Wednesday, March 09, 2016

Okay, Junior, But Why Let KPMG Off the Hook?

It's a pretty disgusting state of affairs. Under the Trudeau government, rich tax cheats get amnesty. It seems the Canadian Revenue Agency is only allowed to use the wheel, the rack and those thumb screws on the little people.

But what about KPMG, the accounting giant that seems to have masterminded the Isle of Man tax dodge scheme? When you raid a drug den you sweep up the addicts but you make damn sure to get the dealer because that's the one you most want, the trafficker. He's the one staring at real jail time.

So when are we going to see the KPMG tax partners in their navy pin stripes and brogues doing the perp walk before our news cameras? This is a criminal venture to make away with millions of tax dollars that belong in the federal treasury. That's a crime, a big crime - unless it's somehow not. Either way we need and deserve some answer, the sort of thing we would never expect to get from Harper. Oh, wait a minute. Never mind.


rumleyfips said...

The way I understand it, the deal was sealed in March 2015 and the money was recovered months ago.

Owen Gray said...

Plenty of ordinary folks pay taxes -- and penalties, Mound.

crf said...

So it was Harper, not Trudeau who made the deal.
Trudeau could have revoked this settlement. But then there may be lawsuits.

There is going to be large amount of this kind of crap coming to light as Harper's compost gets turned over.

The Mound of Sound said...

I'm sure Trudeau is catching heat for some of Harper's wrongdoing but, when that's the case, he has to explain the history of the issue and why he's stuck with the outcome. That's true for the Saudi arms deal. An appropriate degree of transparency could have prevented Trudeau's government from appearing high-handed, even underhanded. Sending Dion out to whimper half-hearted excuses is beyond foolish.

As for KPMG, we need an enquiry into all the major accounting firms. It is they who hatch these schemes and bring them into effect. To them it may be stretching the rules, bending but not breaking. Regardless they're gaming the system and shifting the burden of financing the government from those who can most afford it to those far less able to pay. When the weeds get that tall you have to go at them with a machete.

The Mound of Sound said...

@ Chris. This may have been Harper's doing but Trudeau did nothing to divulge what went on. CBC uncovered it through freedom of information demands. That's not acceptable from a government that proclaims itself open and above board.

Alison said...

One year ago in March the UK passed laws to make it a criminal offence to help clients with tax evasion.
This past November they arrested four senior execs at KPMG on tax evasion charges and in January a senior partner resigned.

The Mound of Sound said...

That's interesting, Alison. Thanks. Tax evasion is a criminal offence under Canada's Income Tax Act and those who participate in a scheme to evade tax are liable to conviction. The related offence of fraud falls within the Criminal Code. I would have thought either avenue, or both, would permit KPMG to be charged, if not as a principal, then as a co-conspirator or counselor of the underlying offence.

The Canadian government never seems interested in prosecuting these types, perhaps because the major accounting firms are so deeply integrated into our political parties. They're almost siblings.