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Results: 106 - 120 of 226
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:14
The cost will be met by KPMG, because I am here to discuss matters that date from the time when I was an associate with KPMG.
View Tamara Jansen Profile
CPC (BC)
Right. Okay.
It is a bit concerning to hear that KPMG U.S. and KPMG Canada wouldn't have the same sort of systems in place for risk management. If it didn't work in the U.S., is it possible that the system you have in place also didn't work? I wonder if you could speak to that.
It is concerning as a taxpayer, as a business owner myself. I always want to make sure that we do the right thing. We've always trusted our accountants to give us good information because we don't know the tax law very well, so how can we be sure, as businesses, that we're not being given poor advice on these sorts of tax schemes?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:16
I explained the risk management situation as it applies to tax planning. In my opening remarks, I also explained that the Isle of Man tax product had been analyzed by senior associates in the office, whose names you have asked me for. In addition, the documentation that you have been sent describes the establishment of the companies in the Isle of Man and also provides the analysis that was done more than 20 years ago.
View Tamara Jansen Profile
CPC (BC)
Again, I'm just curious. I didn't really get an answer that could make Canadian businesses feel secure that the tax advice they're getting is correct, especially seeing that KPMG U.S. clearly failed in their duty to ensure they were doing things legally. It doesn't sound like KPMG U.S. and KPMG Canada are sharing the same sort of risk management committee. How can we be sure that we're getting good advice?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:17
You would have to ask the right people.
I was an associate in Quebec and part of the Canadian company. I do not know the risk management procedure in KPMG United States. That is a matter for KPMG United States.
Like all large companies, KPMG has a risk management procedure in place. I have explained the procedure in Canada, but I cannot explain the procedure in the United States, because I am not familiar with it
View Annie Koutrakis Profile
Lib. (QC)
View Annie Koutrakis Profile
2021-06-17 17:18
Thank you, Mr. Chair.
Welcome to the committee, Mr. Bilodeau.
Can you explain to us how the taxation system in Canada, and, more broadly, the taxation system internationally, has changed since the OCS structure, as you call it, has been in place? More specifically, what laws or regulations have been put in place to fight against these tax avoidance strategies?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:19
Over the years, there has been a major evolution in taxation and in other aspects. Twenty years ago, who would have thought that we would be wearing masks today? The same has happened in the taxation system. Tax laws have evolved; they are constantly changing. The case law has also evolved. Moreover, tax rates have gone down. These factors have contributed greatly to a change of behaviour and culture, and even to the recognition of what is called fiscal morality.
Twenty years ago, fiscal morality did not exist. Legislation was applied as it was written. Because of the events that I have just explained, fiscal morality has taken hold. This is not only the case in Canada; it is happening in all industrialized countries.
The work done by the OECD has greatly contributed to this evolution. I can think, for example, about a report entitled “Harmful tax competition: an emerging global issue” that was published in the major industrialized countries, and about the measures that have been put in place. Organizations are now required to declare their profits by country, so that the countries with advantageous tax rates can be identified. Organizations of a certain size are required to make that declaration.
I don't know whether that answers your question, but it does explain the evolution, in my opinion.
View Annie Koutrakis Profile
Lib. (QC)
View Annie Koutrakis Profile
2021-06-17 17:21
Yes. As I see it, society has also evolved and has defined what is acceptable and what is not. I am sure that all members of our committee share that view. Basically, that is why we are conducting this study.
I have one last question for you.
What tax planning strategies does KPMG currently use, and how have those strategies evolved in the last 20 years or so?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:21
KPMG has evolved as the situation has evolved. It adapts to the situation. As I said earlier, 20 years ago, no one talked about fiscal morality. Now they do. It's now about more than the letter of the law. It goes beyond that. Furthermore, the courts are handing down judgements along the same lines. Everyone is required to adapt to taxation legislation and to what the courts are deciding in specific cases.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-06-17 17:22
Thank you, Mr. Chair, and thank you, Mr. Bilodeau, for coming to our meeting.
You may feel like you're in an inquisition, but in fact, this study is much broader than Cinar or the sword companies or the paradise papers or KPMG. We're trying to get to the bottom of how tax evasion can be eliminated.
My guess is we're not going to get to the bottom of it, but we're trying to make some progress. I'm glad you mentioned the OECD, because the OECD did come out with a very interesting report entitled “Ending the Shell Game: Cracking down on the Professionals who enable Tax and White Collar Crimes”.
I'd be surprised if we were able to get any accounting firm from across Canada to come to committee and admit that they've been engaged in tax evasion. They may even deny that they've been involved in tax avoidance, but as you've suggested, tax avoidance is different from evasion and is a matter of degrees and there is aggressive tax avoidance and there is just simple tax avoidance.
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:23
There's a huge difference between the two. I invite you to consult the website of the Canada Revenue Agency. It very clearly establishes the difference between tax evasion and tax avoidance.
Tax evasion is wilfully failing to comply with the law. If you wilfully fail to comply with the law—
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-06-17 17:24
Mr. Bilodeau, I did want to ask you a specific question.
That OECD report specifically highlighted four things that could be done to address the issue of, what they refer to as, professional enablers. They're talking about accountants. Let's be very frank about that.
The first was engaging in more communication. The second was leveraging the role of supervisory bodies in industry sectors. Third was early disclosure, and then whistle-blowing, and then a strong approach to enforcement.
I want to ask you a question about the second part, and that is supervisory bodies. Those are your professional societies that are governed provincially. Are you aware of anyone within KPMG, any accountant within KPMG, having been disciplined or cited or censured as a result of the Isle of Man offshore structures?
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:25
No, I don't have that information.
View Ed Fast Profile
CPC (BC)
View Ed Fast Profile
2021-06-17 17:25
I'd like you to comment on what it is that your profession could do to help reduce or eliminate tax evasion. I know it's a tough question, but surely you, as a lifelong accountant, have been able to identify certain strategies that could help our country address this issue that costs taxpayers billions and billions of dollars every year.
Serge Bilodeau
View Serge Bilodeau Profile
Serge Bilodeau
2021-06-17 17:26
You have to really think the issue through, to be aware of what tax authorities, either provincial or international, are saying. The most recent budget was clear. There are a huge number of tax compliance measures. Some measures are becoming more and more punitive for specific situations.
To answer your question, I would say that we are certainly on the right track.
Results: 106 - 120 of 226 | Page: 8 of 16

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