The statement follows reports that 21 wealthy Canadians have been linked to shell companies on the Isle of Man set up by accountancy firm KPMG, an investigation by Canada’s CBC News and Radio Canada found.
The cost of setting up the structure is C$100,000 (£60,835, $74,649, €70,414) with an investment minimum of C$5m.
Confidentiality, however, is guaranteed, the media outlets reported.
No amnesty
Responding to media reports, Canada’s minister of national revenue, Diane Lebouthillier, refuted suggestions that CRA’s decision not to prosecute tax cheats was tantamount to offering an amnesty.
“I would like to clarify that, when deciding whether to pursue compliance orders or other actions before the courts, as a result of audits, the CRA consults the department of justice.
“Early dispute resolution, where appropriate, is in the public interest. Litigation is costly for everyone and the outcome of complex, tax-related litigation processes may be unsuccessful.”
In relation to the KPMG clients, “the CRA continues to take action on a number of fronts, including actively seeking further information through the court”, she said.
“Going further, by analysing additional information, the agency has uncovered a number of additional tax schemes set up in the Isle of Man. The CRA is analysing these additional structures to identify any similarities with the KPMG scheme and, where appropriate, will take all necessary compliance actions.”
Lebouthillier concluded by issuing a stern warning: “Let me be clear: tax cheats can no longer hide. We take these matters very seriously and those who choose to participate in these schemes, must face the consequences of their actions.”
