Canadian High Commission Pressed On ‘Tax Sham’

NEWS FROM THE CELTIC LEAGUE

The Celtic League have written to the Canadian High Commissioner expressing outrage that Canadian authorities tried to resolve via a ‘back room deal’ allegations about a so called ‘tax sham’ involving the Isle of Man which was exposed via the Canadian Broadcasting Corporation.

Earlier this week CBC in an update said ‘confidential discussions’ between authorities and the firm involved had broken down and the matter was proceeding in the Federal Courts (see link):

http://www.cbc.ca/…/kpmg-tax-sham-used-by-at-least-25-wealt…

A copy of the letter to High Commissioner, Gordon Campbell (picture) is set out below:

“Mr Gordon Campbell
The High Commissioner for Canada
Canadian High Commission
Canada House
Trafalgar Square
London 
SW1Y 5BJ

2nd October 2015

By email and post

Dear Sir,

I draw your attention to the attached link which relates to a CBC report on a so called ‘tax sham’ scheme in Canada being operated via the Isle of Man:

http://www.cbc.ca/…/kpmg-tax-sham-used-by-at-least-25-wealt…

Having followed the reports on this matter since CBC first started to air them in early September I was disappointed at suggestions that the Canadian authorities were having ‘confidential discussions’ to try to resolve this issue.

I see from the latest report that the so called deal has fallen through and a court case is now proceeding in Canada.

I do not expect you to comment on the current issue before the Federal Courts however I would place on record our concern that ‘ a deal’ to resolve this issue quietly was ever contemplated.

It is outrageous of any government to attempt a back room settlement of an issue when allegations as serious as this are aired.

As we pointed out in correspondence to the OECD recently (copy enclosed):

“the damage caused by tax evasion allegations is not only counter-productive to the State (in this case Canada) which alleges lost revenue but also by the territory (in this case the Isle of Man) which is the subject of the allegations and thereby suffers reputational damage.

Legitimate and credible financial services business must be tarnished when the only medium for resolving issues over taxation is via the mass media.”

Canada’s second largest Trade Union has correctly pointed out that;

“For low- and middle-income Canadians, tax avoidance by the wealthy and privatizing public services have the same result: the average person pays more so a few wealthy individuals can get even wealthier,”

Clearly it is the responsibility of the Canadian government and the CRA to ensure that the correct ‘tax take’ for the Canadian Exchequer is achieved and that anyone alleged to have evaded or facilitated the evasion of tax is brought to book.

Finally, I would point out that US authorities when similar allegations were raised in their jurisdiction several years ago were prepared to use the full weight of criminal law to resolve the matter. There was no talk of shameful back room deals there!

Yours sincerely

J B Moffatt (Mr)
Director of Information”

Related links:

https://www.celticleague.net/…/cbc-manx-allegations-oecd-p…/

http://www.cbc.ca/…/cabinet-ministers-met-publicly-with-kpm…

BERNARD MOFFATT

Issued by: The Celtic News

02/10/15

THE CELTIC LEAGUE INFORMATION SERVICE.

The Celtic League established in 1961 has branches in the six Celtic Countries. It promotes cooperation between the countries and campaigns on a range of political, cultural and environmental matters. It highlights human rights abuse, military activity and socio-economic issues

http://celticleague.net