CRA promises post-Panama Papers blitz

Canadian tax agency reveals clamp down on offshore accounts is under way with Isle of Man at the top of the list

CRA promises post-Panama Papers blitz
The media minefield that was the Panama Papers appears to have calmed down for now – however, the action on offshore tax holdings is only just beginning.

That’s because Andrew Treusch, the head of the Canada Revenue Agency (CRA) has stated that the tax agency is beginning a “blitz” on the Isle of Man tax scheme that has recently captured attention and raised increase concerns about offshore holdings.

Speaking to the House of Commons on Thursday, Treusch remarked that 100s of accounts are already being pursued – specifically those created by KPMG on the Isle of Man.

In a Financial Post article, Treusch reportedly told the committee that “we don’t characterize the KPMG file as an amnesty” adding “we are determined to continue to get all of the participants in this scheme – and we want our day in court.”

The CRA’s efforts to clamp down on tax evasion and tax avoidance have recently been boosted by a $444 million investment from the Federal government included in the 2016-17 budget. Funds are expected to be dedicated to hiring more auditors who will target multinational corporations and it is predicted by Ottawa that the new investments could generate around $2.6 billion in revenue during the next five years.