PM ‘satisfied’ rules were followed
Trudeau defends his friend and chief Liberal fundraiser with ties to offshore trust
OTTAWA— Prime Minister Justin Trudeau says he’s satisfied with Liberal chief fundraiser Stephen Bronfman’s explanation for his ties to a $60-million offshore trust, as opposition MPs attempt to haul the Montreal businessman before a parliamentary committee.
Speaking with reporters in Vietnam on Wednesday, Trudeau directly addressed Bronfman’s appearance in the Paradise Papers for the first time.
“In regards to the specific case you mentioned, we have received assurances that all rules were followed,” Trudeau said in Hanoi, where he is attending an APEC meeting.
“Indeed the same assurances made in the public statement released by the family, and we are satisfied with those assurances.”
A joint Toronto Star and CBC-Radio Canada investigation detailed on Sunday Bronfman’s connection to the Kolber Trust, an offshore trust established in the Cayman Islands in 1991.
The investigation was based on the Paradise Papers, a new leak of documents detailing how the world’s wealthy invest their money in off- shore tax havens, obtained by Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists, which includes the Toronto Star.
Records from the leak suggest the Kolber Trust was established to handle Bronfman family investments in Israel. The trust tied in Bronfman’s Montreal business, Claridge, as well as the family of retired Liberal senator, Leo Kolber.
A lawyer representing Bronfman vigorously denied any wrongdoing.
“Stephen Bronfman and his family have always conducted themselves in accordance with the highest legal and ethical standards,” the statement, issued Monday, reads.
Bronfman’s personal involvement with the Kolber Trust amounts to a single loan which complied with “all legal requirements, including with respect to taxes,” according to the family’s statement. Bronfman and Kolber declined requests by the Star and CBC for an interview.
Trudeau’s comments Wednesday did little to quiet the Liberals’ political problems at home, where the opposition parties have seized on Bronfman’s name appearing in the offshore leak. Conservative Leader Andrew Scheer said it was inappro- priate for Trudeau to “absolve” his friend “of any wrongdoing.”
“A day or two after the Canada Revenue Agency said that they would be taking (the Paradise Papers) seriously, they’d be reviewing this, going through it, the prime minister basically just says we are satisfied,” Scheer told reporters in Ottawa.
“What kind of message does that send to the Canada Revenue Agency and the people that will be reviewing the file? What kind of message does that send to Canadians?”
The NDP plan to bring forward a motion that would summon Bronf- man and Kolber before the House of Commons’ finance committee to face questions about their involvement with the trust.
In an interview, NDP Leader Jagmeet Singh also questioned what effect Trudeau’s comments could have on a possible CRA review. “How can we expect the CRA to move forward in an impartial manner when the prime minister has provided this direction?” said Singh. “The direction should be: Canadians are not satisfied, we need to do whatever needs to be done to make sure Canadians are satisfied with the situation.”
Facing questions in the Commons, National Revenue Minister Diane Lebouthillier touted her government’s investments in CRA enforcement. “The government recognizes that this is a multibillion-dollar issue,” she said.
“(CRA) now has the tools to review 100-per-cent of tax returns from major multinational (companies) each year. This allows the agency to identify large businesses and high-net worth individuals who may be involved in schemes.”
“No one is above the law.”