NDP says Revenue Department should investigate conflict-of-interest allegations

OTTAWA – The Canada Revenue Agency should investigate conflict-of-interest allegations involving KPMG accountants and high-level bureaucrats in the department, the NDP’s Peter Julian said Monday.

Radio-Canada recently reported that a group of accountants, including KPMG employees, invited department bureaucrats to cocktails at Ottawa’s exclusive Rideau Club in 2014 and 2015.

That was during the time the global tax firm was in negotiations with the government over a tax-related dispute.

KPMG and the Revenue Department were at odds over the company’s refusal to release the names of clients who were reportedly transferring money to the Isle of Man in order to avoid taxes.

Revenue Minister Diane Lebouthillier responded to Julian during question period, stating that her department’s accountants were invited by the Chartered Professional Accountants of Canada, a national accounting organization.

Julian, however, said the whole affair smells of a conflict of interest worthy of an official investigation.

The Liberal government said last week it was investing nearly $500 million in the hopes of recouping more than $2.6 billion in unpaid taxes.

The government’s plan is to investigate four international tax havens every year, starting with the Isle of Man.