Secret tax scheme: tip of the iceberg
- Details
- Published on Tuesday, 15 March 2016 14:00
- Written by editor
KPMG, a massive multinational accounting firm, organized a “sham” tax scheme to help millionaires dodge taxes - and the Canada Revenue Agency let them off the hook.
Tell our government to close tax loopholes and stop tax dodging in the upcoming budget
Stop tax dodgersLast week, a CBC investigation uncovered a secret tax scheme that could be just the tip of the iceberg. KPMG, a massive multinational accounting firm, organized a “sham” tax scheme to help millionaires dodge taxes with offshore accounts.1
It gets worse. Last May, bosses at the Canada Revenue Agency made a secret backroom deal to let them off the hook with no consequences. The CRA drags normal people through the courts, but these super wealthy clients got amnesty – even after several CRA staff raised the alarm about a secret deal they knew to be wrong.2
Tax evasion is huge problem in Canada. One study showed that tax evasion costs us up to $81 billion - that’s half our total healthcare spending. But we can stop it.3
Our new government is set to table its first budget on March 22, and we have a chance to turn public outrage about this secret tax deal into lasting changes to make sure the super wealthy pay their fair share. Click here to call on our new government to end KPMG’s “sham” tax deal, and close tax loopholes in the budget.
This isn’t about messing up a tax return. KPMG helped clients dodge $130 million worth of taxes through offshore accounts on the Isle of Man, and they took a 15% cut.
Prominent academics are calling on the Minister of National Revenue to undo the CRA’s secret deal and Canadians for Tax Fairness is calling for KPMG to be charged with facilitating tax evasion.4 Those are good steps, and we can do more to close tax loopholes that cost all of us billions.
The good news is that the Liberals made election promises to overhaul the CRA and to do more to combat international tax evasion.5
This is the moment to act. At a time when our new government is boldly running a deficit to keep campaign promises and make key investments, the billions we lose to wealthy tax dodgers could go a long way towards improving our fiscal strength while paying for infrastructure and social services.
There’s one big problem. Many powerful people benefit from tax dodging schemes, and they will pressure the government to keep loopholes open and enforcement weak. We need to speak out together to counter their influence.
Under Harper, the CRA was given millions of extra funding to bully charities and helped multi-millionaires dodge taxes. With Harper gone, things can be different - but we need to work together.
Closing tax loopholes, putting in place a measures to stop tax dodging, and a few reforms could generate over $50 billion in revenue.6 That is more than the Liberals’ projected deficit. We could have green infrastructure and a budget that’s in the black.
Click here to add your name: http://www.leadnow.ca/stop-tax-dodgers
We’re in this together,
Amara, on behalf of the Leadnow team
Sources:
[1 & 2] Canada Revenue offered amnesty to wealthy KPMG clients in offshore tax “sham”
http://www.cbc.ca/news/business/canada-revenue-kpmg-secret-amnesty-1.3479594
[3] Huge cost of tax evasion revealed as campaign to tackle tax havens launches
http://www.taxfairness.ca/en/news/huge-cost-tax-evasion-revealed-campaign-tackle-tax-havens-launches
[4 & 5] Critics want public hearings into Canada Revenue amnesty for KPMG offshore tax dodgers
http://www.cbc.ca/news/business/public-hearings-cra-kpmg-offshore-tax-deal-1.3481677
[6] Fair Tax Revenue Options: Submission to the House of Commons Finance Committee on Priorities for the 2016 Federal budget: http://www.taxfairness.ca/sites/taxfairness.ca/files/resource/c4tf_submission_to_finance_committee_on_2016_fed_budget.pdf
Please support the Leadnow.ca community! We're funded by people like you, and our small, dedicated team and growing community make sure your donation goes a long way. Every dollar helps. You can donate online at http://www.leadnow.ca/en/donate
Leadnow.ca is an independent campaigning community that brings Canadians together to hold government accountable, deepen our democracy and take action for the common good. You can follow us on Twitter, Facebook and Google+.
Leadnow.ca - À l’Action est une communauté indépendante qui souhaite réunir les Canadiens afin de demander des comptes au gouvernement, approfondir notre démocratie et passer à l’action pour le bien commun. Suivre sur Twitter, Facebook, et Google+.
Leadnow.ca, PO Box 2091, Stn Terminal, Vancouver, BC, V6B 3T2 — 1‑855‑LEADN0W | 1‑855‑532‑3609