The Canada Revenue Agency’s decision to quietly cut a deal last month with wealthy KPMG clients caught in an offshore tax evasion scheme was made based on a conclusion it was the best likely outcome for the public, a House of Commons committee was told today.
Last month, CBC’s The Fifth Estate and Radio-Canada’s Enquête obtained Tax Court documents showing members of a wealthy family in Victoria had reached an out-of-court settlement on May 24 over their involvement in the KPMG scheme.
This was despite National Revenue Minister Diane Lebouthillier promising to get tough on tax cheats.
The scheme, which the Canada Revenue Agency (CRA) has called “grossly negligent,” was organized by accounting giant KPMG and allowed certain clients to avoid paying tens of millions of dollars in Canadian taxes.
It was done by making it look as if they had given away their