Amnesty over 'shelter' product exposed

An expose in Canada claims the country's tax collection agency has offered an amnesty to wealthy clients who used a KPMG financial product to avoid paying tax.

The information has been leaked to the Canadian Broadcasting Corporation.

A film crew from CBC visited the Island last summer to report on the Canadian Revenue Agency's crackdown on wealthy individuals using the scheme.

The broadcaster says it has discovered these 'high-net-worth' individuals will avoid prosecution if they agree to pay their back taxes, and some interest on their offshore investments.

Gagging orders had also been put in place.

CBC reports at least 26 wealthy clients had each invested a minimum of five million Canadian dollars, using Isle of Man entities described as 'shell' companies.

It's understood KPMG's local office has not been involved in the process.

It issued a short statement today: "This not a matter for KPMG Isle of Man therefore we are not in a position to make any comment."