After revelations that the Canada Revenue Agency (CRA) granted amnesty to a number of KPMG clients who were avoiding taxes in an offshore scheme, the tax authorities have issued a statement to clarify their position.
CBC News recently revealed that the CRA cut a deal with several wealthy KPMG clients, offering them amnesty after it was found they were benefitting from a tax-avoidance scheme on the Isle of Man. The experts consulted by the CBC noted that KPMG has close ties to the federal government, and suggested that the accounting firm and its clients may be getting off lightly. On March 8, the CRA released a statement about the case.
Conducting audits and reassessments
While the tax authorities note that they are unable to speak about a particular case beyond what is already on the public record, the CRA says that it is still actively pursuing KPMG clients, and is in the process of conducting audits and reassessments of several taxpayers.
“The CRA has taken legal action to obtain the identities of all remaining KPMG LLP clients who have not been identified to date,” reads the statement. “The KPMG case is an active file and the CRA's work is not concluded. The Agency will pursue this case to the fullest extent possible, as we do with all other cases of aggressive non-compliance. However, because it is currently before the courts, any further comment from the Agency on this specific case would not only be contrary to the law but could also jeopardize the legal action currently underway.”