Offshore Banking or Tax Evasion Crackdown in Canada?
Canada appears to have it’s own version of the G20 mandated Offshore Banking crackdown. But is it now a Tax Evasion issue instead?
Revenue Canada has accused some employees at the RBC Dominion (Royal Bank of Canada’s trading division) of helping clients set up accounts in Swiss and Leichtenstein offshore accounts to evade taxes. Is this simply European Banking Secrecy bashing or a clear Tax Evasion issue?
Canada Revenue Agency
Now, Revenue Canada or CRA is investigating if other employees have done the same thing in other parts of Canada too.
In a Canadian Broadcasting Corporation report, it appeared that German authorities had shared information obtained from a disgruntled employee (purchased for $7million) with Canadian authorities. 106 Canadian were investigated in a project code named Project Jade.
Other accusations included an employee of RBC Dominion of setting up a foundation specifically to evade taxes and also travelling with a client to Leitenstein.
CRA Audit Bonanza
The CRA has made it pay off, already collecting $3 million in back taxes with an expected $17 million more. Was this worth the expense and trouble it took? You be the judge. CRA is careful to apply the Tax Evasion laws in their investigations.
This activity will probably send warning signals to anyone who may be considering tax evasive activities and make them come clean. But on the other hand, how many will simply not bother and leave Canada altogether? Canadian taxation is already one of the highest in the world and it’s not falling anytime soon. This is a very tax hungry country with extremely high rates of taxes. Compare Hongkong with their 17% income tax rates.
But I still wonder about others who may actually be legitimate in their dealings and getting caught up in this G20 created storm of beating up on Tax Havens and their banking secrecy. I sincerely hope they get their man but certainly not at the expense of civil liberties and the innocent by-stander.
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