Hong Kong’s Chan brothers, famed for charity in Canada, fight tax investigation over KPMG offshore firms
- Tax agency wants heirs to Hong Kong’s Crocodile Garments fortune to hand over 1,297 documents about an offshore company structure in Isle of Man
- A lawyer says the offshore firms were only for philanthropy and never distributed gifts or income for the Chan family’s personal use
Hong Kong Canadian tycoons Caleb and Tom Chan – whose huge donations have made them two of the biggest names in Vancouver philanthropy – are fighting Canada’s tax collector by refusing to hand over documents about an offshore company structure set up in the Isle of Man with the help of accounting giant KPMG.
The Canada Revenue Agency (CRA) has not accused the Chans of wrongdoing as it audits the brothers and seeks access to the documents.
A lawyer associated with their charitable interests said the offshore structure was only for philanthropic purposes, and no Chan family member ever received income for personal use or gifts from it.
“At the time the Isle of Man Companies were wound up, all of the assets of the Isle of Man Companies were transferred to the Chan Family Charitable Trusts, where these funds continue to be used to facilitate international charitable giving,” Daniel Reid, a lawyer for the trusts, told the South China Morning Post.
The Chan brothers are asserting lawyer-client privilege over the Isle of Man material in their court battle with Canada’s Minister of National Revenue. The CRA wants the material as it audits the brothers.
Details of the Chans’ court battle with Canada’s tax collector were first reported by the Canadian Broadcasting Corporation on Tuesday.