Evidence of meeting #57 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was kpmg.
A video is available from Parliament.
5 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Who was on the risk management committee? Which positions within KPMG were held by committee members?
5 p.m.
Chartered Professional Accountant, KPMG
My colleagues on the risk management committee are generally seasoned employees from most Canadian provinces. They come from large firms, such as those in Toronto, Montreal, Vancouver and Calgary.
5 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Yes, but you should be aware of who was on that committee. It's an important committee. So, who were the members of the risk management committee?
5 p.m.
Chartered Professional Accountant, KPMG
The committee members change over time.
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I'm clearly asking you this question to get their names.
I gather that you're telling me that all issues regarding whether tax laws were broken were studied by the risk management committee.
So, who was on the committee? If you know the names of the people or which titles they had, we would like to know that information. Can you give us some names today? If not, you can give us those names next week.
5:05 p.m.
Chartered Professional Accountant, KPMG
It would be better to ask KPMG that question. You can understand that, during my time at KPMG, many people were on this committee.
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Yes, that makes sense.
However, it would be important for us to know, because—
5:05 p.m.
Chartered Professional Accountant, KPMG
Do you have a specific period in mind or are you looking at a period of many years?
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
The period that I'm referring to is the one where the foreign structures were created. We have questions about that period, between 2000 and 2014. Over these years, decisions were made to establish foreign companies and structures. It would be important to have this information.
I'll give you some time to answer my question over the next few days. I'll go on to my next question.
5:05 p.m.
Chartered Professional Accountant, KPMG
I just want to be sure that I properly understand your question. You are particularly interested in the risk management committee members who studied the tax structure of the Isle of Man, right?
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Yes, certainly. I would like to know who studied all these issues and verified whether the entity complied with tax legislation.
Now, you talked about two cases where you created foreign tax structures. When did you create them? Do these structures still exist? Lastly, who approved the structures that you proposed?
5:05 p.m.
Chartered Professional Accountant, KPMG
This goes back to your first question, where you wanted to know who was on the risk management committee. The question will be addressed as such.
Since I'm only at KPMG very temporarily, it would be much easier to ask KPMG the question directly, instead of through me. I see no inconvenience with KPMG answering that question.
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you. However, we've asked KPMG questions several times now, but we haven't gotten many answers from them. No matter, we will continue.
I know that you worked on two similar files. To your knowledge, how many of these companies were established to create these foreign tax structures?
5:05 p.m.
Chartered Professional Accountant, KPMG
I participated in two operations to create foreign tax structures. I can't answer that question on behalf of partners from across Canada.
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
So, you weren't aware of any other foreign tax structures.
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Okay.
After Ms. Iacovelli appeared before this committee on May 6, did you meet with her or speak with her, and did you receive any instructions from KPMG or KPMG's lawyers and any legal advice prior to your appearance before this committee?
5:05 p.m.
Chartered Professional Accountant, KPMG
I haven't spoken with Ms. Iacovelli. You can understand that I was asked to appear before the committee with about 36 hours' notice. This is very short notice. Yes, I spoke with KPMG because I'm here to talk about my time as a partner at KPMG. So, there is a link with KPMG.
Incidentally, I'm speaking to you today from a KPMG office. I thought that it would be the best place to avoid technical difficulties, but it looks like they can happen here as well.
5:05 p.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you.
Do you know or have you ever met or spoken with Sandra Georgeson, Enzo Beretta or Anne Couper Woods?
5:05 p.m.
Chartered Professional Accountant, KPMG
No. I don't know them.
I heard one of your colleagues say that Sarah—I believe that was the name that I heard—was asked to appear, but I had never heard her name before.
5:10 p.m.
NDP
5:10 p.m.
Liberal
The Chair Liberal Wayne Easter
We'll move to Ms. Jansen.
I don't have anybody on the Liberal side after that, so if anybody else wants to come in, put up your hand and we'll go there. We'll go to a fast-moving couple of rounds with people with specific questions. We do have a hard stop due to Parliament at 5:30 our time.
If people would put their hands up, I'll go to them for as quick a round as we can have, so that we get those who really want in.
Ms. Jansen, the floor is yours for five minutes.
5:10 p.m.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Mr. Bilodeau, you described a system that you called a risk management committee, which is a way in which KPMG ensures that their people are acting ethically and remain in compliance with the law. Is that correct?