B.C., feds struggle to close money laundering loophole

Lawyers cite solicitor-client privilege in opposing efforts to compel them to report suspicious transactions

House Canadian cash money

While criminal money laundering charges against the proprietors of Richmond-based Silver International Ltd. were stayed late last year, court documents filed in mid-February reveal a former suspect in that case is facing a tax evasion investigation and fighting the Canada Revenue Agency (CRA) to keep her banking records secret.

Caixuan Qin filed an application in the Federal Court of Canada to quash CRA requirements to produce banking records from the Bank of Montreal, the Bank of China, the Canadian Imperial Bank of Commerce, Royal Bank of Canada, TD Canada Trust and Canadian Western Bank.

She claims the minister of national revenue is wrongfully seeking the records “for the improper purpose of compelling evidence in relation to the Applicant as part of a criminal investigation.” MORE

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Canada Revenue Agency launches 100 audits after Paradise Papers leak

Tax authorities identified 3,000 people or corporations connected to Canada in the Paradise Papers leaks but have not yet recovered any money.

Canada Revenue Agency
The Canada Revenue Agency said it has identified 3,000 people or corporations with “links” to the Paradise Papers database, revealed in Canada by a joint Toronto Star-CBC investigation back in 2017. The database is a trove of documents that was leaked to a German newspaper regarding offshore banking and tax avoidance. – Sean Kilpatrick, THE CANADIAN PRESS FILE PHOTO

OTTAWA — Canadian tax authorities have launched roughly 100 audits into taxpayers named in the Paradise Papers offshore tax leak, according to documents tabled in Parliament.

The Canada Revenue Agency said it has identified 3,000 people or corporations with “links” to the Paradise Papers database, revealed in Canada by a joint Toronto Star-CBC investigation.

“It’s a lack of action and lack of results,” said Pierre-Luc Dusseault, the New Democrats’ critic for tax issues.

While approximately 100 Canadian taxpayers named in the database have been identified for audit, the agency reported none have been referred for criminal prosecution for tax evasion and not a single penny has been recouped. MORE