July 27 2016
Two banks have agreed to give the federal revenue minister information from the accounts of a Caribbean financial institution to help the government crack down on Canadian tax evaders. The Federal Court of Canada has approved federal requests for seven years’ worth of transaction information from the Royal Bank of Canada and Citibank, N.A., related to accounts in the name of Cayman National Bank Ltd.
The Royal Bank and Citibank — neither of which opposed the federal demands — have 120 days to hand over records from Jan. 1, 2009, through Dec. 31, 2015, including account statements, deposit slips, cheques, bank drafts and wire transfer orders. The Canada Revenue Agency plans to comb through the data to see if Canadian residents are using the Canadian dollar accounts, opened by Cayman National Bank, to transfer funds to Canada and avoid reporting taxable income from their foreign holdings.