Wednesday, December 16, 2009

In a continuing crackdown on tax evasion, the Canada Revenue Agency (CRA) has alleged that brokers with a branch of RBC Dominion Securities, Canada’s largest brokerage company, helped clients set up accounts in the small European principality of Liechtenstein in order to avoid taxation on their wealth.

In affadavits submitted by the CRA, brokers with an RBC Dominion Securities office in Victoria, British Columbia, allegedly helped clients set up 16 offshore entities with a division of the LGT Group in Liechtenstein. While that is not a crime under Canadian law, auditors allege that the entities were used to help Canadians hide worldwide income. Thirteen individuals are either being audited or have made voluntary disclosures, admitting to tax evasion. The agency is presently investigating to see if there are any other individuals participating in this scheme. Regarding the inquiry, dubbed “Project Jade”, the CRA will only say that it was launched on information from a “confidential informant”.

RBC issued a written statement, saying “As a firm, we have never encouraged Canadians — not 25 years ago and not today — to set up entities in Liechtenstein, and we have never instructed our investment advisers to recommend that practice,” and “we comply with all CRA requirements. This means that we provide all our clients with the forms they need to meet their personal tax obligations, and also file reports with CRA that form the basis for reviews such as this.”

Three RBC employees are presently being investigated, with one remaining unidentified.

Wednesday, August 10, 2005

The province of Alberta, Canada is considering legal action against Canadian National Railway for failing to warn that a derailment last week contaminated Wabamun Lake with a hazardous chemical.

The 700,000 litres of heavy Bunker C fuel oil that spilled into the lake asphyxiated birds and killed fish.

In addition, one of the ruptured tanker cars sent 70,000 liters of Imperial Pole Treating Oil into the lake. This oil is a yellow mixture of polycyclic aromatic hydrocarbons and aliphatic hydrocarbons. Naphthalene, a component of this “very toxic material” is suspected of causing skin cancer if touched and lung or other cancers if inhaled.^[1] Inhalation is promoted by actions that cause splashing or foaming. The mineral oil is used in connection with pentachlorophenol for preserving wooden utility poles.

Wabamun Lake is a popular summertime recreational area about 65 kilometers (40 miles) west of Edmonton, Alberta.

The 766-megawatt Keephills power generating plant, one of 3 in Wabamun, was shut down because the coal-fired plant uses water from the lake. Edmonton’s health authority ordered people not to swim, boat or rescue animals in the lake and to stop using its water or any water from nearby wells for cooking, drinking, showering or brushing teeth. These warnings came 3 days after many residents, including children, had been wading into the oil slick without protective clothing to save wildlife injured by the spill and others had been routinely depending on the lakewater for home use. Why the alert was not issued sooner remains under investigation and may result in criminal charges. Canadian National Railway had been informed of the nature of the oil when it was loaded by Imperial Oil Ltd., Canada’s largest petroleum company. Imperial Oil is posting informational updates on a special website [2]. In addition The Wabamun Residents Committee has established an information website [3].