Canadian tax officials under fire for shady practices

[Orgasmo]

There are multiple accounting and law firms in Canada currently under investigation for assisting with offshore tax evasion. The Canadian Revenue Agency is responsible for auditing and investigating these incidents, but recent CBC investigation has revealed that CRA officials regularly get treated to lavish dinners and all sorts of luxury events hosted by these corporations. Furthermore, senior tax officials regular join these firms as executives once they retire from the government.

Major accounting firms known as the "Big Four" routinely hired senior Canada Revenue Agency enforcement executives and Department of Justice tax lawyers over a span of more than a decade, a CBC News investigation has found.

http://www.cbc.ca/news/business/accounting-firms-recruited-cra-justice-staff-1.3526762

Senior enforcement officials at the Canada Revenue Agency attended several posh receptions offering free alcohol and hors d'oeuvres paid for by groups and firms in the tax industry, typically on the sidelines of major national conferences.

http://www.cbc.ca/news/canada/kpmg-canada-revenue-agency-tax-industry-receptions-1.3536946

This is what corruption looks like in the Western world. These government officials are supposed to monitor and regulate the industry, but they get treated to lavish "conferences" with expensive hotels, gifts and meals regularly. In addition, the family members of these officials often get hired as high paying "consultants" in these companies. Once these officials get their cushy taxpayer funded pensions at the end of their public career after 25 years, they join these corporations as executives, aka the revolving door.

 

[AnGrYcRoW]

Well ain't that grand , hope some heads roll but i won't hold my breath

 

[uncommon]

Should finances of elected officials be public record?

 

[JudoThrowFiasco]

article clearly states that after a year, former CRA employees can actively pursue the private market. Why wouldnt the private sector want employees with that level of experience and why wouldnt former employees want cushy jobs?

The state dinner JT attened probably cost over 300k

Its not uncommon for these types of events to be upscaled.

Can you show evidence of a CRA mitigating the rules in order to benefit a private organization?

 

[Orgasmo]

Well ain't that grand , hope some heads roll but i won't hold my breath

Hah, nothing is going to happen to them. They're going to keep collecting their $150K annual salary for the next few years until they feel like retiring. Upon that time, they will start receiving money from their gold plated federal employee pension.

The best part is that all of that is going to be paid for by your taxes.

 

[JudoThrowFiasco]

Well ain't that grand , hope some heads roll but i won't hold my breath

unless i missed something, no laws were broken. Its not illegal for people to attend lavish events, its not illegal for CRA employees to work for a private firm.

 

[Orgasmo]

article clearly states that after a year, former CRA employees can actively pursue the private market. Why wouldnt the private sector want employees with that level of experience and why wouldnt former employees want cushy jobs?

The state dinner JT attened probably cost over 300k

Its not uncommon for these types of events to be upscaled.

Can you show evidence of a CRA mitigating the rules in order to benefit a private organization?

Do you think it's appropriate for tax officials investigating KPMG for tax scam to attend their lavish parties held at private clubs? Do you honestly think the same officials will be impartial in prosecuting tax evasion cases against these firms knowing they will likely become executives at those firms a few years down the road?

 

[therealdope]

PWC didn't do shit for me when I needed them to find me something 'exotic'.

 

[Orgasmo]

unless i missed something, no laws were broken. Its not illegal for people to attend lavish events, its not illegal for CRA employees to work for a private firm.

So legality is your only compass for right and wrong? If taking bribes were legalized, then it's not wrong then?

 

[JudoThrowFiasco]

Do you think it's appropriate for tax officials investigating KPMG for tax scam to attend their lavish parties held at private clubs? Do you honestly think the same officials will be impartial in prosecuting tax evasion cases against these firms knowing they will likely become executives at those firms a few years down the road?

it wasnt hosted by KPMG it was hosted by the CPA...I would hope the CRA has open dialog with the CPA - i dont care if they eat steak and lobster while doing so. Especially since its the private firms paying for it.

And unless you or the news outlets can provide any real evidence aside from three menu items - im not going to be outraged.

 

[JudoThrowFiasco]

So legality is your only compass for right and wrong? If taking bribes were legalized, then it's not wrong then?

Its up to the courts to decide - in which the article clearly states CRA workers are free to pursue the private sector.

Sorry but i am going to need more variables than public to private moves and expensive functions to be calling for heads on a platter.

 

[Orgasmo]

it wasnt hosted by KPMG it was hosted by the CPA...I would hope the CRA has open dialog with the CPA - i dont care if they eat steak and lobster while doing dso.

And unless you or the news outlets can provide any real evidence aside from three menu items - im not going to be outraged.

Yep, I'm sure those CRA officials acted with complete integrity within those private clubs sitting with the corporate heads, where they proceeded to berate them for their lack of compliance.

Its up to the courts to decide - in which the article clearly states CRA workers are free to pursue the private sector.

Sorry but i am going to need more variables than public to private moves and expensive functions to be calling for heads on a platter.

Let the courts decide? You missed the part where KPMG got an amnesty deal? Name one high ranking government official or corporate head being charged with corruption recently. So either they're all upstanding citizens or they covered their tracks and exploited loopholes well. Which is more likely?

You can't prosecute a case with everyone involved kept their mouths shut, almost like they were following a code of silence advocated by those private clubs. But according to you, it's nothing to worry about at all since there was no evidence the laws were broken.

 

[JudoThrowFiasco]

PWC didn't do shit for me when I needed them to find me something 'exotic'.

dont you act like you dont have a tan and a panamanian brimmed hat

 

[JudoThrowFiasco]

Yep, I'm sure those CRA officials acted with complete integrity within those private clubs sitting with the corporate heads, where they proceeded to berate them for their lack of compliance.

I am more outraged by senators being paid 6 figures and appointed by executive heads.

Again, you are going on assumption - i just do not see anything to get riled up about. Show me specific incidents of illegal activity; Show me the money trail

Except courts can't decide with everyone involved kept their mouths shut, almost like they were following a code of silence advocated by those private clubs. But according to you, it's nothing to worry about at all since there was no evidence the laws were broken.

Most everyone who leaves a private or public company has to sign an NDA. How do you propose we go after people for breaking it?

Is you ire with people leaving the public sector for the private or with lavish events?

Are you saying there should be no networking between the two sides?

What if you worked for public works and after 10-15 years - Aecon wanted to hire you for you inside knowledge on policy procedure? Would you turn it down?

 

[irish_thug]

Is you ire with people leaving the public sector for the private or with lavish events?

Are you saying there should be no networking between the two sides?

For the investigative branch there absolutely should be no networking.

 

[JudoThrowFiasco]

For the investigative branch there absolutely should be no networking.

the 2013 conference just said it had 3 senior CRA (?) attended - the article oddly does not specify 3 senior what.

But i agree, if it was investigators, they should not have attended - and that could be seen as tampering - but i see no evidence of it outside of assumption

 

[Orgasmo]

I am more outraged by senators being paid 6 figures and appointed by executive heads.

Again, you are going on assumption - i just do not see anything to get riled up about. Show me specific incidents of illegal activity; Show me the money trail

Yep nothing to worry about there:

"The sponsors include two Toronto law firms connected to the KPMG case. Osler, which began hosting events as far back as 2010, took on KPMG as a client in 2013, defending it against the Canada Revenue Agency's court action. Another Bay Street firm, Dentons, has sponsored tailgate parties for each of the last five years and in court documents is said to have provided legal advice as KPMG set up its offshore scheme."
http://www.cbc.ca/news/canada/kpmg-canada-revenue-agency-receptions-conferences-1.3540285

If there was a money trail, don't you think it would be pretty well hidden considering these firms specialize in laundering money? Unfortunately, those conversations and deals being made behind doors in private clubs tend to be impossible to come by.

Most everyone who leaves a private or public company has to sign an NDA. How do you propose we go after people for breaking it?

Is you ire with people leaving the public sector for the private or with lavish events?

Are you saying there should be no networking between the two sides?

So you see nothing wrong with the tax officials going to the private parties hosted by the firms that are under investigation by their agency? No conflict of interest? Nothing shady?

Your certainly have an interesting view of the world. So what do you think those people were discussing behind closed doors? Remember, the public isn't entitled to know.

 

[JudoThrowFiasco]

Yep nothing to worry about there:

"The sponsors include two Toronto law firms connected to the KPMG case. Osler, which began hosting events as far back as 2010, took on KPMG as a client in 2013, defending it against the Canada Revenue Agency's court action. Another Bay Street firm, Dentons, has sponsored tailgate parties for each of the last five years and in court documents is said to have provided legal advice as KPMG set up its offshore scheme."
http://www.cbc.ca/news/canada/kpmg-canada-revenue-agency-receptions-conferences-1.3540285

If there was a money trail, don't you think it would be pretty well hidden considering these firms specialize in laundering money? Unfortunately, those conversations and deals being made behind doors in private clubs tend to be impossible to come by.


So you see nothing wrong with the tax officials going to the private parties hosted by the firms that are under investigation by their agency? No conflict of interest? Nothing shady?

Your certainly have an interesting view of the world. So what do you think those people were discussing behind closed doors? Remember, the public isn't entitled to know.

So you are going to convict on what you deem "shady" without evidence of action to back it up.

15 clients were given amnesty but we have no idea for what - petition the government to release the info if you want. Theres still 6 people under investigation

And it wasnt hosted by the firm - it was hosted by the CPA. Are the CRA workers suppose to up and leave when they see 1 or 2 KPMG people there? If KPMG held a private function for CRA investigators only, i would care more - but the CPA hold events all the time and they are not runned by KPMG

How are you going to convict without a money trail?

I just need more hard evidence to go on ...unless you just want me to feign outrage.

Rich people -argggh.

Edit* i will say the subsequent article you posted is more damning than the first two. Just because it mentions 3 KPMG employees on the board of 17 at the CPA.

 

[Unknown Pleasures]

It's sad but pragmatic that tax authorities target little guys as it's easier to get them to pony up, or they don't have resources for long, expensive drawn out legal battles.

Also amazing that people will claim tax laws need to be relaxed because the rich have the means to find ways to avoid taxes.

I suppose it is somewhat akin to those who want to legalize drugs in the "can't stop it anyways" type of thinking.

 

[therealdope]

dont you act like you dont have a tan and a panamanian brimmed hat

Capital gain is as exotic as my claims get.