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Results: 121 - 135 of 730
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:48
My colleagues did not comment on what was going on in the office. My former colleague mentioned to you what was happening with the famous situation between Cinar and KPMG.
I would imagine that, when the request was made to KPMG Canada, they took it seriously and investigated to see if anyone was involved in any way. Since I am in Quebec, people from KPMG Canada called me to see if I was aware of this situation. I told them very quickly that I had no knowledge of this case. They did not tell me if they had done any research elsewhere.
In any case, it was not my responsibility because I was working in client services, not in risk management or in the business of the firm as a whole.
View Julie Dzerowicz Profile
Lib. (ON)
Thank you so much, Mr. Chair.
I want to thank Mr. Bilodeau for joining us. Thanks for enduring all your technical difficulties.
Mr. Bilodeau, as you know, we're here to talk about how we can improve our efforts to combat tax avoidance and evasion. What practices are in place at KPMG to ensure that it is not in any way helping clients to avoid or evade paying taxes in Canada?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:50
In connection with the development of tax planning, at the time, the firm had set up a risk management committee. I imagine that this committee still exists. You will understand that I am no longer an associate in the firm, as I have reached retirement age.
The professionals working on a particular file conduct an analysis. Then they must send it to a committee that analyzes the planning in more detail and draws conclusions about the level of risk. I'm talking about tax planning here.
View Julie Dzerowicz Profile
Lib. (ON)
For every single client, you send every single client to a risk committee for an assessment in order to ensure—
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:51
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:51
The associates still have a certain amount of autonomy. The risk management committee will not be asked to evaluate a contribution to a registered retirement savings plan, for example.
However, in terms of tax planning, a detailed analysis is conducted to determine compliance with the letter of the law. A final test determines whether the tax transaction is considered to be within the spirit of the law. That is a judgment call. As soon as we reach that stage, there is an obligation to go before the risk management committee, which must determine whether or not there is a problem with respect to the spirit of the law. That judgment is subject to interpretation. In fact, the courts have heard several cases on this test, called the general anti‑avoidance rule. Once the general anti‑avoidance rule comes into play, the risk management committee becomes involved to approve or reject the proposed planning.
View Julie Dzerowicz Profile
Lib. (ON)
Mr. Bilodeau, how does the approach at KPMG in ensuring that you have practices in place to ensure that you're not helping clients avoid or evade taxes line up with the best practices or best in class in Canada, or even around the world, actually? How are you ensuring that you have the best-in-class practices in place to make sure that you're not in any way, as a company, helping companies to avoid paying taxes or to evade taxes?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:53
First, let's make one thing clear: KPMG does not engage or participate in transactions that could be considered tax evasion.
In short, tax evasion is deliberately ignoring the law. So you ignore the test of the law. KPMG is not involved in tax evasion.
However, tax avoidance, not tax evasion, is a different story. Tax avoidance refers to operations that reduce taxes, but that first follow the letter of the law. A second test seeks to determine whether it also follows the spirit of the law.
The professionals involved must first determine whether the tax plans proposed or analyzed follow the letter of the law. That is the first test. The professionals, the associates, have the expertise required to perform this analysis.
As for the second test, whether the spirit of the law is respected, the associates must automatically do their analysis, but they must send it to the risk management committee, which will either support or reject the transaction in question. If the committee rejects the transaction, the associate is not allowed to implement the plan. If the committee approves the transaction, the associate may continue discussions with the client on the plan.
View Gabriel Ste-Marie Profile
BQ (QC)
Thank you, Mr. Chair.
Good afternoon, Mr. Bilodeau.
From my point of view, creating a company in the Isle of Man, into which wealthy Canadian clients pour their fortune, so that the shell company can then pay them tax‑free donations, is completely immoral. I, for one, want to live in a society where such schemes are illegal. That is why the committee is doing this study on the situation.
I want to remind you that all witnesses who appear before committees of Parliament are protected by immunity, meaning that you do not have to worry about incriminating yourself or anyone else. If something were to be revealed, under no circumstances could it be used in a lawsuit. That is what the Law Clerk and Parliamentary Counsel of the House has reminded us. What we want to do is get to the bottom of it, and I think that this immunity allows us to do that.
To your knowledge, is there a connection between KPMG and the sword companies: Shashqua, Katar, Sceax, and Spatha?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:57
My former colleagues answered that question based on the analysis that was conducted.
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:57
You will understand that I cannot testify and make assumptions about things I do not know. All I can confirm, as I mentioned in my opening remarks, is that I do not know these companies, I have never heard the names of these companies and I do not know the people involved.
I know that the firm was asked, and my former colleague, who is responsible for taxation in Canada, answered it.
View Gabriel Ste-Marie Profile
BQ (QC)
She actually didn't answer it, and we just passed a motion to have her answer it.
So let me confirm what you just told me: to your knowledge, there is no connection between KPMG and Shashqua, Katar, Sceax, and Spatha. Did I understand correctly?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 16:58
I don't know them, and the firm answered that it had no connection with those companies.
View Gabriel Ste-Marie Profile
BQ (QC)
I find it curious that you don't just say “yes, you're right”.
Results: 121 - 135 of 730 | Page: 9 of 49

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