Wednesday, December 16, 2009
In a continuing crackdown on tax evasion, the Canada Revenue Agency (CRA) has alleged that brokers with a branch of RBC Dominion Securities, Canada’s largest brokerage company, helped clients set up accounts in the small European principality of Liechtenstein in order to avoid taxation on their wealth.
In affadavits submitted by the CRA, brokers with an RBC Dominion Securities office in Victoria, British Columbia, allegedly helped clients set up 16 offshore entities with a division of the LGT Group in Liechtenstein. While that is not a crime under Canadian law, auditors allege that the entities were used to help Canadians hide worldwide income. Thirteen individuals are either being audited or have made voluntary disclosures, admitting to tax evasion. The agency is presently investigating to see if there are any other individuals participating in this scheme. Regarding the inquiry, dubbed “Project Jade”, the CRA will only say that it was launched on information from a “confidential informant”.
RBC issued a written statement, saying “As a firm, we have never encouraged Canadians — not 25 years ago and not today — to set up entities in Liechtenstein, and we have never instructed our investment advisers to recommend that practice,” and “we comply with all CRA requirements. This means that we provide all our clients with the forms they need to meet their personal tax obligations, and also file reports with CRA that form the basis for reviews such as this.”
Three RBC employees are presently being investigated, with one remaining unidentified.
Monday, December 3, 2007
The former Mayor of Sefton in the United Kingdom has been jailed for fraudulantly obtaining state benefits.
John Walker and his wife Catie, were found guilty of conspiracy to defraud at Liverpool Crown Court and of exaggerating ill health to obtain disability living allowance.
The Judge Brian Lewis described the fraud as “a disgraceful breach of trust”.
He was jailed for 15 months for conspiring to defraud £32,871.85 in Disability Living Allowance together with a six months concurrently sentence for conspiracy to defraud £4,000.25 in Income Support.
His wife, Catie Walker, was jailed for eight months for the DLA offence and a concurrent four months for the Income Support swindle.