The Federal Court of Canada has taken lawyers for KPMG and the Canada Revenue Agency to task over yet another delay in a slow-moving court action that began more than three years ago, when federal authorities won a judge's order to obtain names of the accounting firm's wealthy clients using its Isle of Man tax dodge.
KPMG had been ordered to provide key documents by May 13. However, records were sought by media outlets, the court realized that the accounting firm failed to meet its deadline — and that lawyers for the CRA went along with it.
No reason was given for missing the deadline.
Lawyers for both the accounting firm and the CRA told the court that they had taken an "extension" on the deadline, not understanding they needed permission from the case management judge.
A letter from the court to both parties on June 10 quoted the judge as saying the parties needed to move more quickly.
In a letter filed in court yesterday by KPMG lawyer Mahmud Jamal, sent "on behalf of both parties," KPMG and CRA now say they will provide their materials on Oct. 20 and Dec. 1 respectively. The hearing date itself has not changed. It is Jan. 24 to 26, of next year.
The documents would have included original materials about the Isle of Man "tax product," affidavits from the central players involved in the scheme, transcripts of examinations for discovery, and other exhibits.
The Isle of Man scheme was uncovered by CRA auditors in 2012, a scheme the agency would later allege was a "sham" that "intended to deceive" authorities.
Despite those allegations, the agency mysteriously let the case fall dormant after KPMG decided to fight the judge's order.
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