A sweeping criminal probe into offshore tax evasion has ensnared the director of a natural gas producer financed with Chinese capital whose bankruptcy has exposed major regulatory lapses in Alberta’s oil patch.
Court documents show properties in Calgary, West Vancouver and north Toronto owned by, or affiliated with, Wentao Yang and his wife, Rong Catherine Lu, were targeted in February raids by the Canada Revenue Agency, the RCMP and West Vancouver Police.
CRA investigators allege that Mr. Yang and Ms. Lu received payments totalling $2,666,865 through a series of transfers involving foreign corporations that he is either directly or indirectly involved with, and that Mr. Yang did not report income tied to the transactions on his 2016 personal returns. As a result, it says he evaded income tax totalling $736,562. Mr. Yang also failed to report and remit $126,993, according to the documents filed in Provincial Court in Calgary.