The complete details of how BDO, now the fifth largest accounting firm in the world, was involved in fraudulent tax planning, can be viewed on this site.
Within the pages of this website you will also learn how the Canadian Imperial Bank of Commerce (CIBC) arranged a fictitious loan of USD $694,852,318 (which at the time amounted to over CDN $1 Billion using 1998 foreign exchange rates), for a client of accounting firm, BDO, in order to avoid paying tens of millions of dollars in taxes. In a letter to the taxpayer, (who was eventually reassessed), The Canada Customs and Revenue Agency (CCRA) states, “The entire set up could be readily viewed as a sham”. Astonishingly, no evidence exists of a single criminal charge that has been laid against any of the participants - yet.
Many are now wondering how many other Canadian chartered banks participated in similar fraudulent schemes with other global accounting firms?
Ironically since the CCRA ruled that the CIBC loan scheme was a sham to avoid paying tax, the taxpayer that was reassessed has sued his former tax advisory firm, BDO.
In an Affidavit that was filed in support of his lawsuit against BDO, the taxpayer states that it was suggested to him by BDO’s Senior Tax Accountant that he see a lawyer who worked at Fraser Milner Casgrain LLP.
The taxpayer states that what stood out to him about his meeting, with the lawyer from Fraser Milner Casgrain LLP, was that “about first thing he said was to the effect”, “Do you think any judge in Canada will believe this?” Interestingly the lawyer, from Fraser Milner Casgrain LLP, also notes that the funds that were loaned by CIBC in the tax fraud scheme were from New York and not Toronto.
During a court hearing that took place on February 4th, 2013, in The Supreme Court of British Columbia, it was revealed in open court that the Senior BDO Tax Accountant who had organized the fraudulent scheme had “put many billions of client dollars offshore”. It was also revealed that many others across Canada had participated in significant amounts of fraudulent tax evasion and their names were revealed in open court as well
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