Taxman reviewing Canadian links to Paradise Papers

By
AFP
|
A board shows the logo of Canada Revenue Agency (CRA). Image Courtesy: CBC News via Canadian Press/Sean Kilpatrick
 

OTTAWA: Canada's tax agency on Monday began poring over papers leaked from the offshore law firm Appleby for any evidence of Canadians having used tax havens to evade paying taxes in this country.

According to public broadcaster CBC, the names of roughly 3,300 Canadian companies, trusts, foundations, and individuals appear in the so-called Paradise Papers, including Stephen Bronfman — Prime Minister Justin Trudeau's close family friend and chief fundraiser.

"The CRA (Canada Revenue Agency) is reviewing links to Canadian entities and will take appropriate action in regards to the Paradise Papers," John Power — the spokesman for Revenue Minister Diane Lebouthillier — said.

In a statement, the CRA said it has been actively pursuing tax evasion and avoidance, saying these are "multi-billion issues".

It currently has 990 audits and more than 42 criminal investigations related to offshore accounts underway.

The CBC is a partner of the International Consortium of Investigative Journalists (ICIJ), which revealed how the rich and multinationals avoid taxes using offshore wealth hubs, including Britain's Queen Elizabeth II and US Commerce Secretary Wilbur Ross.

The ICIJ was behind the similar Panama Papers made public last year.

Trudeau has made tax fairness a centrepiece of his political messaging.

But while his calls to tax the rich have resonated with voters, the ICIJ said its trove of secret documents suggests Claridge — Bronfman's private investment company — "quietly helped move millions of dollars offshore" in order to possibly avoid taxes.

Bronfman's godfather Leo Kolber, who was also implicated in the alleged scheme, raised funds for Trudeau's father when he was prime minister.

In a statement, Bronfman denied the allegations, saying he "has never funded nor used offshore trusts."

"His Canadian trusts," he added, "have paid all taxes on all their income to the Canadian government."

Refuting allegations linking him to a US$60 million transfer to a Kolber family trust in the Cayman Islands, Bronfman said the sum was a "single loan" more than 25 years ago and was made "in full compliance with all legal requirements, including with respect to taxes".

These assurances, however, failed to quell opposition attacks on the government.

"Justin Trudeau's priority was really tax fairness," said Conservative finance critic Pierre Polievre. "It's very curious that he's done nothing to go after the mega-millionaires who stuff their money in foreign tax havens in order to avoid Canadian tax."

New Democratic Party parliamentary leader Guy Caron accused the Trudeau Liberals of "making it easier for their friends to place their money in offshore accounts… and not pay their fair share".