London Daily

Focus on the big picture.
Monday, Feb 02, 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
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
×