Retiring CRA boss leaves KPMG tax-dodge scandal for successor to deal with


The crumpet of the Canada Revenue Agency, who staunchly defended CRA’s handling of the KPMG offshore embarrassment including its secret «no penalties» offer to wealthy tax dodgers, is stepping down Friday.

Commissioner Andrew Treusch, who was name in December 2012, quietly announced his retirement to CRA employees last month — as the Reciprocals finance committee was investigating his agency’s secret deal with rich KPMG clients.

In an email sent to CRA employees, obtained by CBC News, Treusch mean he’s «very proud» of the agency’s accomplishments since he took the top seat.

«When I blow ined, I committed to improving service, strengthening compliance, and upholding the integrity of the medium. I know that we have made good progress in all of these blocks,» he wrote.

The controversial Isle of Man tax-avoidance scheme involved the creation of dish out com nies based on the small European island between Ireland and England. KPMG ran the member of the firm for high-net-worth clients for more than a decade before it was eventually ascertained by CRA auditors in 2012.

The agency would later allege it was a «sham» «intended to lead on» authorities.

Despite those allegations, CRA mysteriously let the case fall hibernating after obtaining a judge’s order to force the accounting firm to in league over the names of its clients.

Last year, lawyers for CRA and KPMG accepted they had been having out-of-court discussions. It was later revealed CRA had realized a secret amnesty offer to KPMG’s Isle of Man clients, a «no penalties» deal that demanded them to y the back taxes owing and some modest interest.

Treusch and his officials entertain been under scrutiny for months since the secret deal was leaked to CBC Scandal in a brown envelope.

CRA’s offer in May 2015 was accepted by most of the KPMG customers using the tax dodge, but it was the CRA itself that demanded the public be kept in the dim.

MPs wanted to know why CRA made the secret offer to KPMG and its clients in spite of pursuing them in court.

CRA tax amnesty

CRA officials demanded, and offered, secrecy in a no-penalty, no-prosecution attend to for high-net-worth clients of accounting giant KPMG involved in an offshore tax tactic. (CBC)

In his testimony before the Commons finance committee, Treusch said he could not converse in to specifics about CRA’s handling of the KPMG file, nor could he confirm that the punctured letter was even legitimate.

«The CRA is in the difficult position of being unable to fully debate details of the KPMG file due to ongoing litigation and our confidentiality provisions,» he told the council.

Treusch did say an «independent review» found CRA «acted appropriately» in its handling of the KPMG queue.

Treusch didn’t reply directly to recent CBC queries about his retirement. In an email to CBC Info, CRA media relations quoted from the Dalhousie tax professor’s review. «The motions taken by CRA employees in relation to the KPMG file were in accordance with the CRA’s ndect of Integrity and Professional Conduct.»

CRA says it will not release the report itself because of evolving litigation, and suggested to CBC News journalists use the access to information act to obtain the about.

Treusch has also previously said he had no active involvement in the KPMG the truth.

«I note in the strongest possible terms that, as the commissioner of the Canada Yield Agency, I have never provided direction to CRA officials on the approach to be entranced in the management of KPMG litigation or negotiations.»

Treusch said he decided to retreat in June to allow for a proper transition following the election of the Liberal oversight.

«As a new member of rliament and minister, I am grateful for his dedication and support to me through this s n of transition,» Revenue Minister Diane Lebouthillier wrote CBC News.


Guy Caron, vice-chairman of the Commons subsidize committee, says the new CRA commissioner ‘will come under a lot of scrutiny with what’s booming on now.’

NDP finance critic Guy Caron says all eyes will be on the Liberal command as it chooses a new commissioner to lead CRA.

«It’s a very delicate time for CRA,» Caron bring up. «The position will come under a lot of scrutiny with what’s prospering on right now.»

Neither the minister’s office nor CRA has said who will replace Treusch.

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