The accounting firm KPMG remains in hot water as it is believed that the company promoted an offshore Isle of Man tax avoidance scheme as a means for clients to hide money from ex-spouses during the divorce process.
This information was uncovered during a recent parliamentary probe reveal, which means there is likely to be more information released in the days and weeks to come.
It is believed that this information is contained in several emails between company executives and an outside law firm. Furthermore, this was a point of discussion for sales representatives when trying to bring affluent clients on board.
KPMG is one of Canada's largest accounting firms, however, this most recent development is yet another black mark in a growing scandal that continues to get worse.
At this point, everything is pointing towards the fact that the company helped run a secret offshore scheme for more than 10 years. The Canada Revenue Agency alleges that the scheme was "intended to deceive" the authorities.
This type of scheme is nothing new, as people have been looking for ways to hide money during divorce proceedings for many years. However, what you don't expect to see is a large accounting firm telling its clients and prospective clients that this tactic is okay.
As you move through the divorce process, you need to know what is expected from you and how to remain in line with the law. It is also essential that you know what your ex-spouse is doing, as the hiding of assets could work against you during property division.
Source: CBC News, "KPMG promoted hiding money from wealthy clients' ex-spouses in offshore 'sham'," Harvey Cashore, Priscilla Hwang and Kimberly Ivany, June 07, 2016