London Daily

Focus on the big picture.
Monday, Mar 09, 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
Trump Declines UK Offer to Deploy Aircraft Carriers to Middle East Amid Iran Conflict
Prince Harry and Meghan Markle to Return to Australia After Seven Years for Philanthropic and Business Engagements
UK Government Signals Independence From Washington as Cooper Says Britain Does Not Agree With Trump on Every Issue
UK Experts Warn AI Chatbots Are Fueling Surge in Claims of Organised ‘Satanic’ Ritual Abuse
UK Political Parties Divided Over Strategy as Iran Conflict Reshapes Foreign Policy Debate
Britain Discloses Secret Military Repair Hubs Operating Inside Ukraine
Trump Says US No Longer Needs UK Carrier Support After Delayed Offer Amid Iran Conflict
Why Britain Has Become Involved in the US-Israel Military Campaign Against Iran
UK Gas Storage Falls to Under Two Days as Iran Conflict Jolts Global Energy Markets
UK Warned to Brace for Economic Shock as Iran War Drives Global Energy Price Surge
Starmer and Trump Hold First Call After Public Dispute Over Iran Conflict
UK Dentists Returned £1.3 Billion to Government as Shift Toward Private Care Accelerates
Expert Warns UK Must Build Emergency Food Stockpiles to Prepare for Climate Shocks or War
UK Plans Charter Flight to Evacuate British Nationals from Gulf as Regional Conflict Disrupts Air Travel
Families of Zimbabwe’s Liberation Fighters Call on Britain to Help Locate Skulls Taken During Colonial War
Iran’s Ambassador Warns Britain to ‘Be Very Careful’ Over Deeper Role in Expanding Middle East War
UK Military Leadership Defends Britain’s Defensive Role in Expanding Middle East Conflict
Four U.S. Strategic Bombers Arrive in Britain as Iran War Intensifies
Soham Murderer Ian Huntley Dies After Violent Attack in High-Security Prison
UK Lawmakers and Experts Condemn Scale of Overseas Human Remains Held in British Museums
Royal Navy Aircraft Carrier HMS Prince of Wales Placed on Standby for Potential Deployment
United Kingdom Confirms U.S. Military Using British Bases for Operations Targeting Iranian Missile Sites
Starmer Defends UK Role in Iran Conflict After Renewed Criticism from President Trump
Blue Owl Reveals £36 Million Exposure After Collapse of UK Lender Serving Wealthy Clients
UK Asylum Reform Plan Triggers Fierce Debate Over Border Control and Humanitarian Impact
US Stealth Bombers Head to UK Base as Trump Issues Stark Warning to Iran
UK Deputy Prime Minister Says Legal Case Could Exist for British Strikes on Iranian Missile Sites
Investigators Link Mysterious Parcel Fires Across Europe to Russian Intelligence Operation
Debate Intensifies Over Britain’s Legal Justification for US Military Operations Launched From UK Bases
Britain Faces Heightened Energy Price Risks as Iran-Linked Tensions Threaten Global Oil and Gas Supplies
British Counter-Terror Police Arrest Four Suspected of Spying on Jewish Community for Iran
Axel Springer Agrees $770 Million Deal to Acquire Britain’s Daily Telegraph
Iceland Supermarket Drops Trademark Challenge Against Icelandic Government in Long-Running Naming Dispute
UK Defence Secretary Visits Cyprus Following Scrutiny of Britain’s Response to Drone Attacks
Questions Grow Over Britain’s Military Readiness as Response to Iran Conflict Draws Scrutiny
UK Offers Failed Asylum Seeker Families Up to Forty Thousand Pounds to Leave Voluntarily
Saharan Dust Could Bring ‘Blood Rain’ to Parts of the UK as Weather Systems Shift
UK Deploys Additional Typhoon Fighter Jets to Qatar and Helicopters to Cyprus Amid Rising Middle East Tensions
Experts Urge Britain to Accelerate Renewable Energy Push as Global Conflicts Drive Up Costs
British Public Shows Strong Reluctance to Join Wider War in Iran
First UK Evacuation Flight Departs Middle East After Lengthy Delay
United Kingdom Imposes New Visa Requirements on Travelers from St. Lucia and Nicaragua
Iran Conflict Strains U.S.–U.K. Alliance as Trump and Starmer Clash Over Military Strategy
UK Interest Rates Could Rise Above Four Percent Again if Energy Shock Continues, Think Tank Warns
Starmer Defends Britain’s Iran Strategy as Badenoch Urges Stronger Military Support
Labour MP Says She Saw No Sign Husband Broke Law After Arrest in China Espionage Investigation
UK Jobless Rate Overtakes Italy’s for First Time in Years as Labour Market Weakens
United Kingdom Suspends Student Visas for Four Countries in Unprecedented Immigration Move
Campaigners Warn UK Student Visa Ban Could Push Migrants Toward Dangerous Channel Crossings
First U.K. Charter Flight for Stranded Nationals Set to Depart Oman Amid Middle East Crisis
×