CRA: Respected Accounting Firm deceived tax authorities
A wealthy Canadian family paid virtually no tax over a span of eight years, as they even obtained provincial and federal tax credits, while being involved in an offshore tax scam that was developed by one of the most respected accounting firms in Canada, as the CRA (Canada Revenue Agency) stated.
CRA fears that more are like this family and they are starting an investigation on that. According to court documentation, in 2000 members of that family, signed up for a KPMG tax product in the Isle of Man targeting residents with a high net worth, promising that they will have to pay no tax on their investments.
A judicial order obtained by the CRA, demanded KPMG to hand over the names of its wealthy clients who set up shell companies in the Isle of Man. However, the accounting firm is fighting such a decision in federal court.
Meanwhile, documentation shows that from 2002 until 2010, the wealthy family paid little or no tax, even with receiving almost $6 million from an offshore company. According to KPMG Lawyers, any money that the family received are gifts and as a result non-taxable.
Members of the family stated that they were not aware of the matter, and they trusted KPMG fully regarding their implemented tax laws.
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