Evidence of meeting #17 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was kpmg.
A video is available from Parliament.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Since his employment, the CRA did begin to investigate some of KPMG's employees. Was he involved or did he advise on any strategy or any type of involvement once you found out CRA was investigating?
Partner, KPMG
That would be part of the whole settlement discussion, which is an area I just can't get into, unfortunately.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
But it's not settlement when I'm asking about.... Let me ask it this way. At what point was KPMG advised that CRA was investigating this Isle of Man package?
Liberal
The Chair Liberal Wayne Easter
Mr. Wiebe, if you're not sure of specific dates, you can always get back to us on them. That's the easiest way rather than be incorrect.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
Thank you.
I have similar questions about Mr. Paul Lynch. Is he still employed with KPMG?
Partner, KPMG
I believe he was hired five years ago, but I can get back to you on that. It might be six.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
This is a similar question in terms of his involvement once CRA began investigating your clients on the Isle of Man product.
Partner, KPMG
Yes, that will all be part of the settlement privilege, and I can't get into that particular part of the investigation, unfortunately.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
I think, Mr. Chair, those are the questions I have.
How much time do I have?
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
In regard to CRA—not specifically to the Isle of Man—how many ongoing investigations do they have with clients of KPMG?
Partner, KPMG
I don't know the answer to that but I will say that I'm very proud of our track record with our clients and with the CRA. There are always disputes that occur between the tax authorities and taxpayers, as you know, but our track record with CRA in dealing with tax matters with our clients is something I'm very proud of, very proud of.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
If I can squeeze in one more, generally speaking, not on this product specifically, when you're dealing with CRA investigations of your clients, do you tend to deal with the same people or is it a case-by-case officer who deals with it?
Partner, KPMG
Yes, we have 1,400 tax professionals within KPMG here in Canada, and I wouldn't hazard to guess how many people they have employed at CRA, but there are lots of interactions.
Liberal
Jennifer O'Connell Liberal Pickering—Uxbridge, ON
But I'm talking about investigation, not questions and products. I'm talking about when they start investigating.
Partner, KPMG
You know, the way the Canadian tax system would work, there would be hundreds of conversations a day between our clients, as taxpayers, and the CRA, so it happens on a very routine basis. Whether they are large clients or small clients, it's something that's daily.
Liberal
Liberal
The Chair Liberal Wayne Easter
Thank you, both.
I can tell you, Mr. Wiebe, that every MP around here certainly knows about tax disputes with CRA, and most often people who don't have the benefit of an accountant come to our offices and we see them in tears.
Ms. Raitt, you have seven minutes.
Conservative
Lisa Raitt Conservative Milton, ON
Thank you very much, Mr. Chair.
Good morning, Mr. Wiebe.
In your experience, how often do you see criminal prosecutions for tax evasion coming from the CRA?