The Canadian Revenue Agency (CRA) reported the majority of Canadians involved in the Panama Papers scandal paid their taxes. . Money .According to auditors, only two criminal investigations are still in progress, which were launched seven years ago following the Panama Papers leak to a German newspaper..“I do have a detailed update on the Panama Papers,” said Cathy Hawara, assistant revenue commissioner in charge of the CRA’s compliance office. .The majority of Canadians who maintained accounts in Panama complied with the Income Tax Act, Hawara said..“Canadian individuals, corporations and trusts were identified in the course of our review of the Panama Papers,” Hawara testified at the Senate National Finance committee. .“In the end, 65% of the Canadians who were identified in the Panama Papers were found to be compliant. They had met their tax obligations.”.“It is important to remember just because a Canadian individual or company has their name in a leak, it doesn’t necessarily mean they have not met their tax obligations,” said Hawara..Audits followed the 2016 leak of some 11 million files on offshore account holders from the Panama office of a global law firm, Mossack Fonseca, to a German newspaper Süddeutsche Zeitung. .According to Blacklock’s Reporter, the CRA at the time sought federal court orders compelling Canadian bankers to disclose accounts of depositors named in the Panama Papers..Cabinet earlier reported to Parliament auditors were examining some 2,600 files on Canadians related to the Panama Papers. .The actual figure was closer to 900, said Hawara..“We have closed 280 audits in relation to the Panama Papers,” said Hawara. .“We have assessed $77 million in taxes and penalties in relation to those 280 audits. This is as of December. I don’t have more up-to-date statistics unfortunately. We had 140 audits still underway.”.“In terms of criminal investigations, what I can confirm is we opened five criminal investigations in relation to taxpayers linked to the Panama Papers,” said Hawara. .“Three investigations have been closed and two are still ongoing.” .Hawara did not detail the three criminal cases that were closed..Auditors in federal court affidavits said they relied entirely on media accounts to track Panama Papers clients. .“I rely on media reports throughout my affidavit and I believe these media reports to be true,” Rachid Fizazi, a CRA auditor, wrote in a 2016 affidavit..In a 2022 report, the CRA's Overall Federal Tax Gap put the value of unpaid taxes at up to $40.4 billion annually, including $4.2 billion lost to offshore transfers. .“Eliminating the potential tax loss from offshore activities can be difficult,” said the report.
