London Daily

Focus on the big picture.
Friday, Jul 24, 2026

MPs urged to demand the names of Canadians behind offshore tax shelters

MPs urged to demand the names of Canadians behind offshore tax shelters

Five years ago, tax law expert André Lareau was blocked from giving testimony before the House of Commons finance committee by a last-minute gag order preventing witnesses from talking about a prominent accounting firm’s tax avoidance scheme.

Now, he has a message for the members of Parliament who are today rebooting their probe into offshore companies registered in the Isle of Man: if they’re serious this time, they should subpoena the Canadian accountants who helped to set up the offshore tax dodge — and demand that they give up the names of the wealthy Canadians whose identities they’ve been protecting.

“If the committee is willing to open that, well, maybe, just maybe, that means that they are pretty serious about it,” Lareau, an associate professor at Laval University, told CBC News.

MPs are re-launching the probe Parliamentarians halted in June 2016 after the accounting firm KPMG said witness testimony in Ottawa could prejudice ongoing court cases.

CBC’s the Fifth Estate and Radio-Canada’s Enquete reported earlier this year that shell companies set up in the Isle of Man are suspected of involvement in a massive fraud that cost investors their life savings. Some experts believe KPMG may have had a hand in creating those companies.

Documents obtained from the Isle of Man’s public registry, as well as emails from an offshore leak of financial data, show links between KPMG and four shell companies set up in December 2001 that were named after ancient swords.

KPMG acknowledges it set up a tax avoidance and asset protection “structure” in the Isle of Man for wealthy Canadians beginning in the late 1990s.

But the accounting firm — also known for providing advisory and auditing services to federal and provincial governments — denies having anything to do with helping to set up the four shell companies later suspected of being involved in a financial fraud that cost investors their life savings, and where more than $500 million disappeared offshore.

CBC/Radio-Canada’s revelation of a suspected connection between those shell companies and the missing millions prompted fraud victims and opposition parties to call for a reboot of the finance committee’s long-dormant investigation of the Isle of Man and offshore shell companies.

“People have been cheated, they have lost their savings. The federal government should do more than pay lip service in the fight against tax evasion and international tax evaders,” said NDP MP Peter Julian.

“Canadian offshore bank accounts … are hiding money from the government. Why would any party not want that revealed?” said Green Party MP Elizabeth May.

Call in the accountants, says Lareau


MPs from all parties voted last week to resume committee hearings this afternoon into offshore tax shelters, including those in the Isle of Man.

Today’s witness list includes Lucy Iacovelli — KPMG Canada’s managing partner for tax — and Janet Watson, who lost her savings in a Montreal-based fraud known as the Cinar/Norshield/Mount Real scheme.

Lareau said that, for the revived committee probe to be effective, MPs must call the individual accountants and bankers who were involved in setting up various Isle of Man shell companies — and who know the names of the wealthy Canadians or “beneficial owners” behind them.

“Obviously, they will talk only to the committee if they are obliged to do so,” Lareau said, pointing out that Commons committees have the power to issue subpoenas.

In the past, KPMG has opposed releasing the names of the wealthy Canadians behind multiple shell companies it helped to set up in the Isle of Man, citing client confidentiality.

Lareau said he believes that MPs were under pressure from the accounting industry to limit their probe when they launched it five years ago.

In 2016, the Liberal-dominated finance committee defeated an opposition motion to compel KPMG to provide the names of the “beneficial owners” of those shell companies. Dennis Howlett, the former head of Canadians for Tax Fairness, said it’s high time the veil was lifted.

“It would be a good idea to force KPMG to disclose beneficial owners,” said Howlett. “It’s not right that people can hide behind shell companies.”

The Trudeau government said in its recent budget that, as part of a plan to crack down on tax avoidance, it would introduce a registry to identify the beneficial owners of Canadian companies.

While that measure wouldn’t affect the Canadians behind offshore companies, it does indicate the Liberal government is concerned about corporations set up to protect the identities of their true owners, said Howlett.

Newsletter

Related Articles

0:00
0:00
Close
Badenoch Rejects Grant Shapps' Bid to Return as Conservative Candidate
BAE Chief Warns Britain Has Underestimated the Risk of War
Burnham Rules Out New Scottish Independence Referendum in First Talks With Swinney
UK Government Strengthens Northern Economic Agenda Through Manchester Headquarters and Regional Partnerships
United Kingdom Opens New Furness Peninsula Coastal Route Under King Charles the Third England Coast Path
England Reduces Business Costs for Hospitality Sector Through New Relief Package
United Kingdom Allocates Seven Point Three Million Pounds for Zero-Emission Aviation Research
United Kingdom Begins Restoration Works on Portishead Railway Line After Six Decades Without Passenger Services
United States Tariff Measures Create New Trade Challenges for United Kingdom and European Union Businesses
Prime Minister Andy Burnham Meets Scottish and Welsh Leaders to Promote Regional Growth Cooperation
United Kingdom Government Announces Twenty Percent Business Rates Cut for Pubs, Clubs, and Music Venues
Prime Minister Andy Burnham Opens Manchester Government Headquarters to Shift Decision-Making Away From Westminster
United Kingdom Defence Ministry Says Armed Forces Ready After Iran Accuses London Over US Military Strikes
United Kingdom Inflation Falls to Two Point Six Percent as Prime Minister Andy Burnham Gains Economic Breathing Room
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Viral Video Raises Questions Over Twelve-Dollar Croissants at Manhattan Bakery
UK Balances Security Commitments With Economic Growth Priorities
Retail and Hospitality Sectors Navigate Consumer Caution and Tax Changes
Key Trends to Watch
British Land Appoints Joanne McNamara as New Chief Executive Officer
UK Government Names New Life Peers Including Former Military and Civil Service Leaders
Institute of Directors Urges Government Action on Employment Costs and Skills Shortages
IMF Raises UK 2026 Growth Forecast to One Percent
UK Retail Sales Growth Slows Sharply as Households Cut Discretionary Spending
UK Ten-Year Bond Yields Remain Above Five Percent as Government Faces Higher Debt Costs
UK Government Plans Earlier End to Low-Value Import Duty Exemption for Online Retail Parcels
Reform UK Leads Tight Westminster Voting Poll as Conservatives and Labour Remain Close
Royal Navy Carrier Strike Group Completes First Arctic and North Atlantic Mission Phase
Andy Burnham Government Cuts Business Rates for Pubs and Music Venues by Twenty Percent
UK Inflation Falls to Two Point Six Percent in June as Food and Fuel Prices Ease
Andy Burnham Becomes UK Prime Minister Facing Growth Challenges and Fiscal Pressure
UK Government Reviews Long-Term Balance Between Cost Relief, Industry Support, and Public Investment Priorities
BBC Could Receive Permanent Royal Charter Under Government Proposal
Northern Ireland Proposes End to Severe Weather Exemptions for Electricity Compensation Rules
Andy Burnham Holds Talks With UK Devolved Leaders on Regional Cooperation and Devolution
House of Lords Launches Inquiry Into Risks Facing UK Democratic Institutions
ScottishPower Renewables Plans Major Rebuild of Whitelee Wind Farm With Fewer Larger Turbines
UK and Italy Leaders Discuss Global Combat Air Programme and Future European Cooperation
UK Government Announces Six Hundred Million Pound Aerospace Investment Package at Farnborough Airshow
European Union Approves UK Participation in Ninety Billion Euro Ukraine Support Loan Framework
Rolls-Royce Warns UK Government Over Jet Engine Funding Decision and Future Manufacturing Plans
UK Inflation Falls to Two Point Six Percent in June as Fuel and Food Prices Ease
Andy Burnham Begins Premiership With Two Pound England Bus Fare Cap and Electricity Tax Cut Plan
YouGov Poll Shows Tight Competition Among UK Political Parties
Space Technology Investment Expands Through UK-US Cooperation at Farnborough Airshow
UK Opens Final India Young Professionals Scheme Ballot for Three Thousand Applicants
United Kingdom Approved for Ukraine Financial Support Initiative With EU Partners
UK and Ireland Leaders Discuss Security, Energy and Regional Cooperation
British Heart Foundation Identifies Ten UK Areas With Severe Shortages of Defibrillators
Former Southern Water Executives Charged Over Alleged Water Test Manipulation Scheme
×