Why is the CBC refusing to hand over info to CRA about potential CDN tax cheats?
- Thread starter Locutus
- Start date
The difficulty with that is that there are many perfectly legal ways of reducing taxes that require either special knowledge to access or lots of extra money to take advantage of them.
Fair would be a flat rate right across the board with no "social engineering" incentives built in. There probably should be a minimum threshold of some sort. If you earn below $10,000 per year, say, you would be exempt from paying any.
I think that you both have hit the nail on the head.
Offer-up a basement income (I'd say higher than $10k) and then set a flat rate across the board, one for personal and one for corporate. Give people (and Corps) an incentive to progress and succeed and the end result will likely be a better life for all involved.
As the expression goes; a rising tide lifts all boats
We all do pay more then we realize, if not so much in income tax, there are all the hidden taxes that add up to the price...
...and if you make money on stocks it's only taxed at half the rate income is, but if you spend the money on people who pay taxes or corporations, its priced in...
Things like Obama care are taxes some say...
...so we are being scammed on multiple levels
then there is the carbone tax....and this new thing called "negative interest rates"...
...and if you make money on stocks it's only taxed at half the rate income is, but if you spend the money on people who pay taxes or corporations, its priced in...
Things like Obama care are taxes some say...
...so we are being scammed on multiple levels
then there is the carbone tax....and this new thing called "negative interest rates"...
Cameco, the Saskatchewan-based uranium mining colossus, is currently in Federal Court facing charges by the CRA that it illegally avoided a stunning $2.2 billion in Canadian income taxes. It is not only the largest such case in Canadian history but one of the most shameless tax dodges ever hatched by a Canadian corporation. The court case has been delayed for years and just the fact that it has finally made it before a judge is good news. But the news could quickly turn bad if, facing defeat, Cameco makes a pitch to settle for less than the full amount. That would be a miscarriage of justice.
It is absolutely critical that the government not make a deal with Cameco for a smaller sum -- as often happens in these cases. Because this is no ordinary case. Cameco is a rogue corporation, contemptuous of the country it operates in, and so arrogant in its tax avoidance scheme that it can't even bother to try to justify it. Confronted by the facts, Cameco just repeats its executive mantra: "We believe that it was established in accordance with sound business principles and in accordance with relevant laws and regulations."
At a time when more and more attention is being paid to off-shore tax havens and the billions we lose to them, Canada needs to make an example of this irresponsible corporate "citizen."
How Cameco avoids taxes
Here's the bare bones of the scheme. In 1999 Cameco decided to dramatically reduce its income tax bill by setting up a subsidiary in Zug, Switzerland, where the tax rate is 10 per cent -- compared to the (then) Canadian rate of about 27 per cent. At the time the price was at rock bottom -- $10 a pound. That's the price the Saskatchewan head office charged its Swiss "subsidiary." Then came the windfall manoeuvre: Cameco drafted a 17-year uranium supply agreement at a fixed price of $10 a pound. It was simplicity itself: Cameco would sell literally all of its uranium through the Swiss subsidiary and it would sell it for whatever the world price was. That world price went to almost $140 a pound in 2007 and is now around $35. All the revenue earned above $10 a pound was taxed in Switzerland at the low rate. (An insignificant amount is actually sold in Europe and, of course, not an ounce of the stuff ever finds its way to Zug.)
This scheme is known as "transfer pricing" and sometimes it is perfectly legitimate -- companies that sell their products in multiple countries "sell" them to subsidiaries which then sell them in their jurisdiction and get taxed on the profits. But more and more multinationals have been abusing the law that allows this -- including Apple, "based" in Ireland, which is now facing a US$15-billion tax bill from the European Commission for its abuse of transfer pricing.
But Apple actually sold its products in European countries and has 5,500 employees in Ireland. Cameco? Not so much. According to a 2014 Globe and Mail story:
"While Cameco says Cameco Europe has its own board of directors and a full-time CEO, documents in the case reveal the European company had no other full-time employees, and no stand-alone office, instead renting space from the law firm performing its legal work."
Virtually all the substantive work was performed in Canada.
All of the uranium is mined in Canada, all of Cameco's sales are negotiated and completed in Canada, and literally all of its profits are generated in Canada. The company's scheme is pure scam which is why fair-tax activists in Saskatchewan call the company Scameco. A citizens' group, Saskatchewan Citizens for Tax Fairness, has been on Cameco's case for several years -- paying for a billboard demanding Cameco pay up and collecting 36,000 names on a petition which it presented to the federal government.
Growing suspicion
But it isn't just citizens' groups looking askance at Cameco. Investment research firms, like Veritas, have questioned the company's scheme. In 2013 company analyst Pawel Rajszel stated:
Another business-focussed group has been sniffing around Cameco's problems. The Bottom Line, a Canadian publication which bills itself as a "Forensic Accounting and Fraud" magazine, has been in contact with Saskatchewan Citizens for Tax Fairness about the case.
Companies like Cameco have for too long framed the tax haven issue as business as usual. But that is now clearly changing and people are starting to see this behaviour for what it is: the legalized theft of Canadian government services. Cameco started off as a public mining company and its technology was developed in Canada with the help of Saskatchewan government money. The Canadian transportation infrastructure allows them to get their uranium to market, they have enjoyed decades in a stable economy, with low inflation, cheap money, low crime and the legal protection accorded a "corporate citizen" under the Charter of Rights and Freedoms. Their workers received free and/or subsidized education and Cameco doesn't have to pay health insurance for its employees -- as companies in the U.S. do. Adding insult to injury, the (federal) taxes Cameco is avoiding are amongst the lowest in the developed word: 15 per cent compared, for example, to 35 per cent in the U.S.
Ironically -- or maybe not -- while the CRA is going after Cameco, Saskatchewan's unabashedly pro-business premier Brad Wall has said almost nothing about the case (the timid NDP opposition has said even less). That seems a bit strange given that
Saskatchewan's share of the proceeds, if the CRA wins, would be over $700 million. Governments may govern in the era of globalization, but giant companies rule. It is long past time that we put a stop to it. A great first step would be for the CRA to refuse to negotiate and get all of our money back.
Then we need to change the law.
Dear CRA: Don't let Cameco get away with its $2.2-billion tax evasion | rabble.ca
It is absolutely critical that the government not make a deal with Cameco for a smaller sum -- as often happens in these cases. Because this is no ordinary case. Cameco is a rogue corporation, contemptuous of the country it operates in, and so arrogant in its tax avoidance scheme that it can't even bother to try to justify it. Confronted by the facts, Cameco just repeats its executive mantra: "We believe that it was established in accordance with sound business principles and in accordance with relevant laws and regulations."
At a time when more and more attention is being paid to off-shore tax havens and the billions we lose to them, Canada needs to make an example of this irresponsible corporate "citizen."
How Cameco avoids taxes
Here's the bare bones of the scheme. In 1999 Cameco decided to dramatically reduce its income tax bill by setting up a subsidiary in Zug, Switzerland, where the tax rate is 10 per cent -- compared to the (then) Canadian rate of about 27 per cent. At the time the price was at rock bottom -- $10 a pound. That's the price the Saskatchewan head office charged its Swiss "subsidiary." Then came the windfall manoeuvre: Cameco drafted a 17-year uranium supply agreement at a fixed price of $10 a pound. It was simplicity itself: Cameco would sell literally all of its uranium through the Swiss subsidiary and it would sell it for whatever the world price was. That world price went to almost $140 a pound in 2007 and is now around $35. All the revenue earned above $10 a pound was taxed in Switzerland at the low rate. (An insignificant amount is actually sold in Europe and, of course, not an ounce of the stuff ever finds its way to Zug.)
This scheme is known as "transfer pricing" and sometimes it is perfectly legitimate -- companies that sell their products in multiple countries "sell" them to subsidiaries which then sell them in their jurisdiction and get taxed on the profits. But more and more multinationals have been abusing the law that allows this -- including Apple, "based" in Ireland, which is now facing a US$15-billion tax bill from the European Commission for its abuse of transfer pricing.
But Apple actually sold its products in European countries and has 5,500 employees in Ireland. Cameco? Not so much. According to a 2014 Globe and Mail story:
"While Cameco says Cameco Europe has its own board of directors and a full-time CEO, documents in the case reveal the European company had no other full-time employees, and no stand-alone office, instead renting space from the law firm performing its legal work."
Virtually all the substantive work was performed in Canada.
All of the uranium is mined in Canada, all of Cameco's sales are negotiated and completed in Canada, and literally all of its profits are generated in Canada. The company's scheme is pure scam which is why fair-tax activists in Saskatchewan call the company Scameco. A citizens' group, Saskatchewan Citizens for Tax Fairness, has been on Cameco's case for several years -- paying for a billboard demanding Cameco pay up and collecting 36,000 names on a petition which it presented to the federal government.
Growing suspicion
But it isn't just citizens' groups looking askance at Cameco. Investment research firms, like Veritas, have questioned the company's scheme. In 2013 company analyst Pawel Rajszel stated:
"[A]ll the upside has been transferred to the subsidiary. Meanwhile all the risk has stayed with Cameco Canada. ... It's strange that the company would have created this Swiss subsidiary without having any real operations in Switzerland."
A Veritas report concludes: "It is therefore difficult to see a reasonable business purpose to [Cameco Europe's] existence, beyond tax minimization." In a further comment, Mr. Rajszel told The Globe and Mail in 2014: "Based on our review of Cameco's [first quarter] results, the dispute with the CRA may force the company to borrow funds and/or cut its dividend in order to finance the back tax payments." Does that suggest Cameco's clever tax dodge could actually expose it to a charge of failing to carry out its fiduciary duty to its shareholders?
Another business-focussed group has been sniffing around Cameco's problems. The Bottom Line, a Canadian publication which bills itself as a "Forensic Accounting and Fraud" magazine, has been in contact with Saskatchewan Citizens for Tax Fairness about the case.
Companies like Cameco have for too long framed the tax haven issue as business as usual. But that is now clearly changing and people are starting to see this behaviour for what it is: the legalized theft of Canadian government services. Cameco started off as a public mining company and its technology was developed in Canada with the help of Saskatchewan government money. The Canadian transportation infrastructure allows them to get their uranium to market, they have enjoyed decades in a stable economy, with low inflation, cheap money, low crime and the legal protection accorded a "corporate citizen" under the Charter of Rights and Freedoms. Their workers received free and/or subsidized education and Cameco doesn't have to pay health insurance for its employees -- as companies in the U.S. do. Adding insult to injury, the (federal) taxes Cameco is avoiding are amongst the lowest in the developed word: 15 per cent compared, for example, to 35 per cent in the U.S.
Ironically -- or maybe not -- while the CRA is going after Cameco, Saskatchewan's unabashedly pro-business premier Brad Wall has said almost nothing about the case (the timid NDP opposition has said even less). That seems a bit strange given that
Saskatchewan's share of the proceeds, if the CRA wins, would be over $700 million. Governments may govern in the era of globalization, but giant companies rule. It is long past time that we put a stop to it. A great first step would be for the CRA to refuse to negotiate and get all of our money back.
Then we need to change the law.
Dear CRA: Don't let Cameco get away with its $2.2-billion tax evasion | rabble.ca
Eighty-five Canadians identified in the Panama Papers leak are now being investigated for tax evasion, the Canada Revenue Agency has revealed.
Details of Canada’s enforcement effort were provided to the Star the same week the U.K., which is a major hub of the offshore finance world, said it has launched reviews into 65 suspected tax cheats based on the leaked documents.
“The CRA will ensure that all Canadian taxpayers identified from the Panama Papers are pursued,” wrote spokesperson Jelica Zdero in an email to the Star confirming the investigations.
These numbers represent the first results of a $444-million investment in the CRA’s enforcement capacities, announced days after the Star and CBC first published the massive leak of offshore corporations and trusts in April.
The CRA confirmed that it had reviewed more than 2,600 records from the Panama Papers, but declined to discuss how it obtained the documents or whether it paid for them, as some European tax agencies have done. It did say that it obtained tens of thousands of supporting documents from foreign governments and court orders to aid the investigations.
To date, 60 formal audits have been launched into Canadians identified in the leaked database of Panamanian law firm Mossack Fonseca.
The CRA also said it has executed search warrants and launched criminal investigations, but declined to be more specific.
“In order to ensure the integrity of our criminal investigative work and to respect the confidentiality provisions of the acts we administer, the CRA does not comment on an investigation that it may or may not be undertaking,” CRA spokesperson Lisa Damien wrote in an email.
Canada loses an estimated $6 billion to 7.8 billion in tax revenues to offshore tax evasion every year. Despite this staggering number, the CRA hasn’t been very successful in prosecuting offshore tax schemes, having convicted only 49 people and levied $13.4 million in fines since 2010.
The U.K. also revealed the results of its Panama Papers crackdown this week.
In response to a question about government action spurred by the leak, Chancellor of the Exchequer Philip Hammond told the House of Commons that 22 people were being formally investigated for civil and criminal tax evasion and 43 more were under review for their links to offshore tax havens.
https://www.thestar.com/news/world/...ns-for-tax-evasion-tied-to-panama-papers.html
Details of Canada’s enforcement effort were provided to the Star the same week the U.K., which is a major hub of the offshore finance world, said it has launched reviews into 65 suspected tax cheats based on the leaked documents.
“The CRA will ensure that all Canadian taxpayers identified from the Panama Papers are pursued,” wrote spokesperson Jelica Zdero in an email to the Star confirming the investigations.
These numbers represent the first results of a $444-million investment in the CRA’s enforcement capacities, announced days after the Star and CBC first published the massive leak of offshore corporations and trusts in April.
The CRA confirmed that it had reviewed more than 2,600 records from the Panama Papers, but declined to discuss how it obtained the documents or whether it paid for them, as some European tax agencies have done. It did say that it obtained tens of thousands of supporting documents from foreign governments and court orders to aid the investigations.
To date, 60 formal audits have been launched into Canadians identified in the leaked database of Panamanian law firm Mossack Fonseca.
The CRA also said it has executed search warrants and launched criminal investigations, but declined to be more specific.
“In order to ensure the integrity of our criminal investigative work and to respect the confidentiality provisions of the acts we administer, the CRA does not comment on an investigation that it may or may not be undertaking,” CRA spokesperson Lisa Damien wrote in an email.
Canada loses an estimated $6 billion to 7.8 billion in tax revenues to offshore tax evasion every year. Despite this staggering number, the CRA hasn’t been very successful in prosecuting offshore tax schemes, having convicted only 49 people and levied $13.4 million in fines since 2010.
The U.K. also revealed the results of its Panama Papers crackdown this week.
In response to a question about government action spurred by the leak, Chancellor of the Exchequer Philip Hammond told the House of Commons that 22 people were being formally investigated for civil and criminal tax evasion and 43 more were under review for their links to offshore tax havens.
https://www.thestar.com/news/world/...ns-for-tax-evasion-tied-to-panama-papers.html
So they are promoting convictions of the small fry. I don't see where sending these people to jail will help them recover the lost money. If I went to jail I would not be able to earn money to pay them back.And how the eff can they impose a 200% fine? They are worse then the mafia.......
The CRA announced today that on October 20, 2016 Wolfgang John Wilm of Whitby, Ontario was found guilty in the Ontario Court of Justice in Newmarket, of one count of tax evasion under the Income Tax Act.
He was sentenced on January 20, 2017 to 20 months in jail and was fined a total of $552,976. In addition to the court imposed fine, Mr. Wilm will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.
A CRA investigation revealed that from 2007 to 2010 Wilm failed to file personal income tax returns to report income he had earned during those years. Wilm received a total of $2,081,167 in income as a self-employed individual which he failed to report. By not filing his returns on time and as required, Wilm willfully evaded or attempted to evade federal taxes of $552,976.
The preceding information was obtained from the court records.
"Our taxes pay for the high level of government services that Canadians count on," said Vince Pranjivan, Assistant Commissioner of the Ontario Region. "When someone tries to evade taxes, it affects all Canadians."
When taxpayers are convicted of income tax evasion, they still must repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.
Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.
Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.
The CRA announced today that on October 20, 2016 Wolfgang John Wilm of Whitby, Ontario was found guilty in the Ontario Court of Justice in Newmarket, of one count of tax evasion under the Income Tax Act.
He was sentenced on January 20, 2017 to 20 months in jail and was fined a total of $552,976. In addition to the court imposed fine, Mr. Wilm will also have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.
A CRA investigation revealed that from 2007 to 2010 Wilm failed to file personal income tax returns to report income he had earned during those years. Wilm received a total of $2,081,167 in income as a self-employed individual which he failed to report. By not filing his returns on time and as required, Wilm willfully evaded or attempted to evade federal taxes of $552,976.
The preceding information was obtained from the court records.
"Our taxes pay for the high level of government services that Canadians count on," said Vince Pranjivan, Assistant Commissioner of the Ontario Region. "When someone tries to evade taxes, it affects all Canadians."
When taxpayers are convicted of income tax evasion, they still must repay the full amount of taxes owing, plus interest and any civil penalties that may be assessed by the CRA. In addition, the court may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.
Taxpayers who have not filed returns for previous years, or who have not reported all of their income, can still voluntarily correct their tax affairs. They may not be penalized or prosecuted if they make a valid disclosure before they become aware of any compliance action being initiated by the CRA against them. These taxpayers may only have to pay the taxes owing, plus interest. More information on the Voluntary Disclosures Program (VDP) can be found on the CRA's Web site at www.cra.gc.ca/voluntarydisclosures.
Further information on convictions can also be found in the Media Room on the CRA website at www.cra.gc.ca/convictions.
There is no game like the information handling game,play and play a like
This is why anonymous is great, they know the game of information handling
F u c k the process of perceived fairness in the formal process
It's all about time,games,power and money
Love it
This is why anonymous is great, they know the game of information handling
F u c k the process of perceived fairness in the formal process
It's all about time,games,power and money
Love it
It is simple if it was from news or a documentary the media outlet will
protect its sources and it has the right to do so subject to a court order
depending on the circumstances which are set out in law.
A news outlet should never give up is source unless compelled to do so
What if the Washington Post had given up its sources and the information
it had on Nixon? Watergate would be a whisper of what might have been.
I worked in new Never Give Up Your Sources Period
protect its sources and it has the right to do so subject to a court order
depending on the circumstances which are set out in law.
A news outlet should never give up is source unless compelled to do so
What if the Washington Post had given up its sources and the information
it had on Nixon? Watergate would be a whisper of what might have been.
I worked in new Never Give Up Your Sources Period
Thank our lucky stars the physician s are getting out of the information handling game,I am sure with great anticipation of restructuring and taking more money as they go
Bravo!
Bravo!
A billionaire Ontario developer with an Order of Canada, a senior vice-president with media giant Rogers Communications and the owners of Winnipeg's famed Nutty Club candy factory are among numerous wealthy Canadians who appear to be linked to a secret tax dodge in the Isle of Man, according to an investigation by CBC's the fifth estate and Radio-Canada's Enquête.
In its internal marketing pitches, KPMG solicited Canadians with a "minimum" of $5 million to invest in an "Offshore Company Structure," charging clients $100,000 simply to start it up. KPMG also guaranteed confidentiality.
In its Isle of Man scheme developed in 1999, KPMG also promised "no tax" on offshore investments — a scheme the Canada Revenue Agency later described as a "sham" in court documents.
The CRA eventually offered a secret amnesty to the accounting firm's clients who had been using the scheme.
But now, some of that secrecy has been exposed.
Using the Isle of Man's public corporate registry and a unique search method developed by journalists, the fifth estate and Enquête discovered the names of numerous shell companies connected to a KPMG tax avoidance scheme that the CRA had alleged "intended to deceive" the federal treasury.
Shell companies are paper structures set up with no real employees, often located in offshore tax havens like the Isle of Man. They frequently use local "nominee" directors that obscure the true identity of real owners.
Still, using the public registry, CBC journalists combed through thousands of documents related to those Isle of Man shell companies and — mixed in with local Isle of Man "nominee" residents — found dozens of names of wealthy Canadians, their relatives and investment advisers
Robinson — who is senior vice-president of Rogers Bank and Financial Services — is also a direct descendant of a wealthy family named Gasque, which made its early fortune in the department store business. Gasque is the same name as the shell company set up by KPMG in December 2001.
When asked if he was involved in the Isle of Man scheme, and if the Gasque name was a coincidence, Robinson declined to respond to emails and phone messages.
Wealthy Canadians exposed in KPMG offshore tax 'sham' - Business - CBC News
In its internal marketing pitches, KPMG solicited Canadians with a "minimum" of $5 million to invest in an "Offshore Company Structure," charging clients $100,000 simply to start it up. KPMG also guaranteed confidentiality.
In its Isle of Man scheme developed in 1999, KPMG also promised "no tax" on offshore investments — a scheme the Canada Revenue Agency later described as a "sham" in court documents.
The CRA eventually offered a secret amnesty to the accounting firm's clients who had been using the scheme.
But now, some of that secrecy has been exposed.
Using the Isle of Man's public corporate registry and a unique search method developed by journalists, the fifth estate and Enquête discovered the names of numerous shell companies connected to a KPMG tax avoidance scheme that the CRA had alleged "intended to deceive" the federal treasury.
Shell companies are paper structures set up with no real employees, often located in offshore tax havens like the Isle of Man. They frequently use local "nominee" directors that obscure the true identity of real owners.
Still, using the public registry, CBC journalists combed through thousands of documents related to those Isle of Man shell companies and — mixed in with local Isle of Man "nominee" residents — found dozens of names of wealthy Canadians, their relatives and investment advisers
Robinson — who is senior vice-president of Rogers Bank and Financial Services — is also a direct descendant of a wealthy family named Gasque, which made its early fortune in the department store business. Gasque is the same name as the shell company set up by KPMG in December 2001.
When asked if he was involved in the Isle of Man scheme, and if the Gasque name was a coincidence, Robinson declined to respond to emails and phone messages.
Wealthy Canadians exposed in KPMG offshore tax 'sham' - Business - CBC News
NUPGE points out the connection between tax dodging and privatization - as a failure to bring in tax revenue is regularly trotted out as an excuse to sell off public assets..........
KPMG tax haven scheme shows connection between tax dodging and privatization “KPMG makes money helping the wealthy avoid taxes and then makes money pushing privatization of public services as a solution to the drop in government revenues caused by tax avoidance.” — Larry Brown, NUPGE president
Ottawa (08 March 2017) — Recently there has been much media coverage about KPMG's scheme that allows its wealthy clients to avoid paying taxes by moving their money out of Canada and into a tax haven. This scheme generates a significant profit for the company but there's another reason that explains why businesses are so interested in keeping their money out of Canada.
KPMG’s tax haven scheme on the Isle of Man shows a strong connection between tax dodging and privatization. At the same time that KPMG is telling governments they need to privatize public services when they’re short of funds, it is helping wealthy individuals dodge taxes — thus ensuring governments are short of funds.
Tax dodging and privatization go hand in hand
For KPMG, both privatization of public services and tax dodging are very profitable. When public services are privatized, KPMG has the opportunity to sell its consulting services to the governments privatizing services and the corporations trying to take them over. The fact KPMG was able to charge each person participating in its tax haven scheme a $100,000 start-up fee shows just how much can be made helping the wealthy dodge taxes.
“KPMG makes money helping the wealthy avoid taxes and then makes money pushing privatization of public services as a solution to the drop in government revenues caused by tax avoidance”, said Larry Brown, President of the National Union of Public and General Employees (NUPGE). “It’s great for KPMG’s profits and very bad for the Canadian public.”
Starving governments of funds to encourage privatization is an old trick
There is nothing new about starving governments of funds to encourage privatization. That trick dates back to when conservative ideologues and those profiting from privatization first started pushing for public services to be sold off. As outlined in NUPGE’s "Privatization Playbook" they knew they couldn’t attack public services directly, so they undermined them by starving them of funds.
Cutting tax rates for large corporations and the wealthy was the method of starving public services of funds that received the most attention, but tax dodging has the same effect.
Tax havens cost the Canadian public $80B a year
The use of tax havens to dodge taxes by the wealthy and large corporations is costing the Canadian public $80 billion a year. KPMG’s tax haven scheme is a part of that.
“When we think about the difference that $80 billion a year would make to our health care system, education system, infrastructure and other public services, the damage done by tax dodging becomes clear”, said Brown.
No charges laid against those responsible
It's 5 years after KPMG’s tax haven scheme was uncovered and still no charges have been laid. While the federal government talks tough, KPMG and the wealthy individuals who used its tax haven scheme are still not facing any penalties.
To add insult to injury, KPMG is still getting federal government contracts. It’s estimated that since KPMG started its tax haven scheme, it’s received over $92 million in federal government contracts.
All of the Big 4 accounting firms profit from privatization
While KPMGs activities have received more attention in Canada, all of the Big 4 accounting firms profit from privatization. In addition to KPMG, these are PwC (PricewaterhouseCoopers), Deloitte, and EY (formerly known as Ernst & Young).
All 4 of these companies are involved in privatization as well as tax dodging. One estimate (link is external) suggests that their tax schemes cost governments around the world $1 trillion (US) a year.
Privatization and tax dodging contribute to income inequality
The Big 4 accounting firms are involved in privatization and tax dodging because these schemes make money for them and their wealthy clients. The price for Canadians is poorer public services, higher user fees, having to pay for expensive private alternatives to public services or increases to regressive taxes. In each case, the impact on the wealthy is minimal and the impact on those with limited means is considerable.
“Both privatization and tax dodging are a cash grab by the wealthy at the expense of the poor and middle class,” said Brown.
KPMG tax haven scheme shows connection between tax dodging and privatization | National Union of Public and General Employees
KPMG tax haven scheme shows connection between tax dodging and privatization “KPMG makes money helping the wealthy avoid taxes and then makes money pushing privatization of public services as a solution to the drop in government revenues caused by tax avoidance.” — Larry Brown, NUPGE president
Ottawa (08 March 2017) — Recently there has been much media coverage about KPMG's scheme that allows its wealthy clients to avoid paying taxes by moving their money out of Canada and into a tax haven. This scheme generates a significant profit for the company but there's another reason that explains why businesses are so interested in keeping their money out of Canada.
KPMG’s tax haven scheme on the Isle of Man shows a strong connection between tax dodging and privatization. At the same time that KPMG is telling governments they need to privatize public services when they’re short of funds, it is helping wealthy individuals dodge taxes — thus ensuring governments are short of funds.
Tax dodging and privatization go hand in hand
For KPMG, both privatization of public services and tax dodging are very profitable. When public services are privatized, KPMG has the opportunity to sell its consulting services to the governments privatizing services and the corporations trying to take them over. The fact KPMG was able to charge each person participating in its tax haven scheme a $100,000 start-up fee shows just how much can be made helping the wealthy dodge taxes.
“KPMG makes money helping the wealthy avoid taxes and then makes money pushing privatization of public services as a solution to the drop in government revenues caused by tax avoidance”, said Larry Brown, President of the National Union of Public and General Employees (NUPGE). “It’s great for KPMG’s profits and very bad for the Canadian public.”
Starving governments of funds to encourage privatization is an old trick
There is nothing new about starving governments of funds to encourage privatization. That trick dates back to when conservative ideologues and those profiting from privatization first started pushing for public services to be sold off. As outlined in NUPGE’s "Privatization Playbook" they knew they couldn’t attack public services directly, so they undermined them by starving them of funds.
Cutting tax rates for large corporations and the wealthy was the method of starving public services of funds that received the most attention, but tax dodging has the same effect.
Tax havens cost the Canadian public $80B a year
The use of tax havens to dodge taxes by the wealthy and large corporations is costing the Canadian public $80 billion a year. KPMG’s tax haven scheme is a part of that.
“When we think about the difference that $80 billion a year would make to our health care system, education system, infrastructure and other public services, the damage done by tax dodging becomes clear”, said Brown.
No charges laid against those responsible
It's 5 years after KPMG’s tax haven scheme was uncovered and still no charges have been laid. While the federal government talks tough, KPMG and the wealthy individuals who used its tax haven scheme are still not facing any penalties.
To add insult to injury, KPMG is still getting federal government contracts. It’s estimated that since KPMG started its tax haven scheme, it’s received over $92 million in federal government contracts.
All of the Big 4 accounting firms profit from privatization
While KPMGs activities have received more attention in Canada, all of the Big 4 accounting firms profit from privatization. In addition to KPMG, these are PwC (PricewaterhouseCoopers), Deloitte, and EY (formerly known as Ernst & Young).
All 4 of these companies are involved in privatization as well as tax dodging. One estimate (link is external) suggests that their tax schemes cost governments around the world $1 trillion (US) a year.
Privatization and tax dodging contribute to income inequality
The Big 4 accounting firms are involved in privatization and tax dodging because these schemes make money for them and their wealthy clients. The price for Canadians is poorer public services, higher user fees, having to pay for expensive private alternatives to public services or increases to regressive taxes. In each case, the impact on the wealthy is minimal and the impact on those with limited means is considerable.
“Both privatization and tax dodging are a cash grab by the wealthy at the expense of the poor and middle class,” said Brown.
KPMG tax haven scheme shows connection between tax dodging and privatization | National Union of Public and General Employees
Spain's top anti-corruption prosecutor quits over Panama link
Spain’s top anti-corruption prosecutor has resigned following weeks of pressure that culminated in an admission that he holds a stake in an offshore company in Panama.
The PSOE’s newly re-elected leader, Pedro Sánchez, said Moix had been forced out “by media pressure and public opinion”, adding that the decisions and actions of prime minister Mariano Rajoy, who leads the PP, were “seriously damaging the health of our democratic system”.
Pablo Iglesias, leader of the anti-austerity Podemos party, said “offshore ministers and prosecutors who corrode democracy and are parasites on institutions” needed to be thrown out of office.
In April last year, Spain’s industry, energy and tourism minister, José Manuel Soria, resigned after alleged links to offshore dealing emerged in the Panama Papers, the leaked documents created by the Panamanian law firm Mossack Fonseca. He denied all wrongdoing but said he was stepping down to limit damage to the PP.
Moix, who was appointed in February, has been accused of trying to hinder an investigation into fraud involving senior PP members in the Madrid region. Despite his insistence that he had done nothing wrong, opposition parties had been vocal in their calls for him to step down.
https://www.theguardian.com/world/2...-corruption-prosecutor-quits-over-panama-link
Spain’s top anti-corruption prosecutor has resigned following weeks of pressure that culminated in an admission that he holds a stake in an offshore company in Panama.
The PSOE’s newly re-elected leader, Pedro Sánchez, said Moix had been forced out “by media pressure and public opinion”, adding that the decisions and actions of prime minister Mariano Rajoy, who leads the PP, were “seriously damaging the health of our democratic system”.
Pablo Iglesias, leader of the anti-austerity Podemos party, said “offshore ministers and prosecutors who corrode democracy and are parasites on institutions” needed to be thrown out of office.
In April last year, Spain’s industry, energy and tourism minister, José Manuel Soria, resigned after alleged links to offshore dealing emerged in the Panama Papers, the leaked documents created by the Panamanian law firm Mossack Fonseca. He denied all wrongdoing but said he was stepping down to limit damage to the PP.
Moix, who was appointed in February, has been accused of trying to hinder an investigation into fraud involving senior PP members in the Madrid region. Despite his insistence that he had done nothing wrong, opposition parties had been vocal in their calls for him to step down.
https://www.theguardian.com/world/2...-corruption-prosecutor-quits-over-panama-link
Canada's weak laws hobble identification of tax dodgers
Correspondence between Finance Minister Bill Morneau and his British equivalent is highlighting Canada's poor international record in flushing out the real owners of suspected tax-haven corporations.
Philip Hammond, Britain's Chancellor of the Exchequer, wrote to Morneau on Dec. 22, seeking Canada's support for exchanges of so-called "beneficial ownership" information — that is, information about who really owns and controls mystery corporations.
Last year, Britain pioneered a publicly accessible online registry that contains such ownership data, part of an initiative to help expose tax evaders, terrorist financers and money launderers.
Hammond's letter was part of his call for reciprocal measures from other countries, including Canada, given that such shady transactions are often conducted offshore.
But a Morneau briefing note about the British request acknowledges Canada has little to offer in response, largely because federal and provincial laws governing corporations are ineffective.
The statutes "do not require collection of beneficial ownership information," says the Feb. 1 document, obtained by CBC News under the Access to Information Act.
"Federal and provincial corporate registry obligations are self-enforcing and limited mechanisms are in place to ensure information collected is accurate and up-to-date."
The letter, like the briefing note, has key sections blacked out under provisions in the Act that allow the withholding of advice.
Canada's weak performance on the "beneficial ownership" file comes even as the CRA steps up efforts to catch offshore tax cheats. The 2016 federal budget gave the agency $444.4 million over five years to tighten the net.
"We're being a laggard within the international system," says James Cohen, interim-executive director of Transparency International Canada, which has pressed for an open and public registry like Britain's.
Cohen says Canada's weak laws and regulations may even be attractive to the international owners of dodgy corporations seeking anonymity.
"Of course, they're going to go where the systems are less stringent," he said.
more
Canada's weak laws hobble identification of tax dodgers: document - Politics - CBC News
Correspondence between Finance Minister Bill Morneau and his British equivalent is highlighting Canada's poor international record in flushing out the real owners of suspected tax-haven corporations.
Philip Hammond, Britain's Chancellor of the Exchequer, wrote to Morneau on Dec. 22, seeking Canada's support for exchanges of so-called "beneficial ownership" information — that is, information about who really owns and controls mystery corporations.
Last year, Britain pioneered a publicly accessible online registry that contains such ownership data, part of an initiative to help expose tax evaders, terrorist financers and money launderers.
Hammond's letter was part of his call for reciprocal measures from other countries, including Canada, given that such shady transactions are often conducted offshore.
But a Morneau briefing note about the British request acknowledges Canada has little to offer in response, largely because federal and provincial laws governing corporations are ineffective.
The statutes "do not require collection of beneficial ownership information," says the Feb. 1 document, obtained by CBC News under the Access to Information Act.
"Federal and provincial corporate registry obligations are self-enforcing and limited mechanisms are in place to ensure information collected is accurate and up-to-date."
The letter, like the briefing note, has key sections blacked out under provisions in the Act that allow the withholding of advice.
Canada's weak performance on the "beneficial ownership" file comes even as the CRA steps up efforts to catch offshore tax cheats. The 2016 federal budget gave the agency $444.4 million over five years to tighten the net.
"We're being a laggard within the international system," says James Cohen, interim-executive director of Transparency International Canada, which has pressed for an open and public registry like Britain's.
Cohen says Canada's weak laws and regulations may even be attractive to the international owners of dodgy corporations seeking anonymity.
"Of course, they're going to go where the systems are less stringent," he said.
more
Canada's weak laws hobble identification of tax dodgers: document - Politics - CBC News
They don't steal smart peoples money........
Samuel Hyman comments on the need to call out tax evasion for the socially-destructive activity it is, rather than burying it in euphemisms and excuses.
But Marco Chown Oved reports that the Libs are backtracking on their past promises to start coming clean about how tax havens are used to siphon money away from Canada's public purse.
The CRA is tightening its amnesty program for tax cheats, including a proposed rule that could expose more of the shady advisers who set up dodgy tax schemes to help clients hide their money.
The revamped regime for the voluntary disclosures program was released earlier this month, after MPs, critics and some tax specialists complained the current rules are too soft on crafty and repeat offenders.
The proposed rules, to come into effect Jan. 1, also require applicants to pay their taxes due immediately on entering the amnesty program, and would treat more harshly any sophisticated investors who cleverly worked to keep their assets secret from the taxman.
The majority of Canadians feel that there are two tax systems, one for the rich and one for the rest of us," said Dennis Howlett, executive director of Canadians for Tax Fairness, urging citizens to speak up about the proposals.
"It is very important for government to get this right."
The voluntary disclosures program was created largely to flush out more tax cheats by offering a type of amnesty for those who self-identify, usually waiving prosecution, penalties and some interest payments while requiring the taxes owed be paid in full. The program has been aimed at deliberate cheaters as well as those who made inadvertent mistakes in previous tax filings.
There have been some high-profile beneficiaries of the program, including Brian Mulroney.
The former prime minister took advantage of a more generous version of the program when he disclosed $225,000 in unusual cash payments from German businessman Karlheinz Schreiber in the 1990s.
The CRA in 2000 allowed Mulroney to pay taxes on only half the undeclared amount he had received from Schreiber. The one-half rule, which was for Quebec-based claims only, has since been rescinded.
Today, a more urgent concern is Canadians stashing their cash in overseas tax havens, not declaring any income and thus evading tax.
Andre Lareau, a professor of tax law at Laval University, says the tougher proposed rules for the voluntary disclosures program are an "improvement."
But he called for even harsher treatment of sophisticated tax cheats under the program, including higher penalties and a stronger requirement for applicants to identify "advisers" through changes in the law and regulations, rather than just policy.
"This is some progress," he said in an interview. "More needs to be done with respect to penalties."
Lareau also said the Justice Department, the CRA and judges need to change their mindsets about prosecuting tax fraud, including seeking more prison terms for dodgy tax advisers rather than the more commonly applied financial penalties.
"Tax fraud is a crime, just as much as robbing a bank," he said. "It should be considered an important crime."
CRA wants tougher rules for tax-cheat amnesty program - Politics - CBC News
The revamped regime for the voluntary disclosures program was released earlier this month, after MPs, critics and some tax specialists complained the current rules are too soft on crafty and repeat offenders.
The proposed rules, to come into effect Jan. 1, also require applicants to pay their taxes due immediately on entering the amnesty program, and would treat more harshly any sophisticated investors who cleverly worked to keep their assets secret from the taxman.
The majority of Canadians feel that there are two tax systems, one for the rich and one for the rest of us," said Dennis Howlett, executive director of Canadians for Tax Fairness, urging citizens to speak up about the proposals.
"It is very important for government to get this right."
The voluntary disclosures program was created largely to flush out more tax cheats by offering a type of amnesty for those who self-identify, usually waiving prosecution, penalties and some interest payments while requiring the taxes owed be paid in full. The program has been aimed at deliberate cheaters as well as those who made inadvertent mistakes in previous tax filings.
There have been some high-profile beneficiaries of the program, including Brian Mulroney.
The former prime minister took advantage of a more generous version of the program when he disclosed $225,000 in unusual cash payments from German businessman Karlheinz Schreiber in the 1990s.
The CRA in 2000 allowed Mulroney to pay taxes on only half the undeclared amount he had received from Schreiber. The one-half rule, which was for Quebec-based claims only, has since been rescinded.
Today, a more urgent concern is Canadians stashing their cash in overseas tax havens, not declaring any income and thus evading tax.
Andre Lareau, a professor of tax law at Laval University, says the tougher proposed rules for the voluntary disclosures program are an "improvement."
But he called for even harsher treatment of sophisticated tax cheats under the program, including higher penalties and a stronger requirement for applicants to identify "advisers" through changes in the law and regulations, rather than just policy.
"This is some progress," he said in an interview. "More needs to be done with respect to penalties."
Lareau also said the Justice Department, the CRA and judges need to change their mindsets about prosecuting tax fraud, including seeking more prison terms for dodgy tax advisers rather than the more commonly applied financial penalties.
"Tax fraud is a crime, just as much as robbing a bank," he said. "It should be considered an important crime."
CRA wants tougher rules for tax-cheat amnesty program - Politics - CBC News