A decade after the Panama Papers leak exposed offshore accounts held by wealthy Canadians, the Canada Revenue Agency has yet to lay a single charge, records show. Blacklock's Reporter says the high-profile case, once described by Ottawa as involving thousands of “high risk” Canadians, appears to have stalled despite years of investigation.“There have been six criminal investigations relating to the 2016 release of the Panama Papers,” the Agency told the Senate in an Inquiry of Ministry report. “Three investigations were discontinued” — with no reasons provided — “and three were underway. As these three investigations were still ongoing, no Canadians have been charged with tax evasion relating to the release of the Panama Papers.”The data was requested by Sen. Percy Downe (P.E.I.), who asked how many Canadians, including individuals, trusts, foundations, and companies linked to the leak, had faced overseas tax evasion charges.The case began in 2016 when 11,500,000 files from Panamanian law firm Mossack Fonseca were leaked to the German newspaper Süddeutsche Zeitung, revealing offshore holdings. .At the time, the CRA said roughly 2,600 Canadians were named, with then-Liberal MP Emmanuel Dubourg calling 85% “high risk taxpayers.”Federal lawyers later secured a court order compelling the Royal Bank of Canada to hand over 40 years of records for offshore clients. Court affidavits show 370 Royal Bank clients appeared in the Panama Papers.Subsequent CRA reviews cut the total number of Canadians with potential connections from 2,600 to about 900. Of those, only 330 were audited, with 110 audits still ongoing. The agency stressed the legal distinction between “tax avoidance” and “tax evasion,” noting that both often involve secrecy and hidden assets..Experts say a prosecution now appears unlikely. The Supreme Court’s 2016 R. v. Jordan decision imposes strict timelines on criminal cases: 30 months in Federal Court and 18 months in provincial courts from the date charges are laid. A 2022 Revenue Agency audit found most tax evasion cases already exceed 30 months in court, raising the risk of Charter challenges.
