MONTREAL — Swiss banking giant Credit Suisse will try to block the Canada Revenue Agency's efforts to obtain volumes of client records as Ottawa cracks down on Canadians suspected of hiding money overseas.
Bank officials tell QMI Agency it won't hand over 500 boxes of documents because it's not required to do so under Canadian law. Credit Suisse adds the Canadian government's request is too broad, and it has filed an injunction in Toronto Federal Court to stop the request.
"Canadian law requires certain conditions to be met before CRA can issue such a request and we do not believe that those legal conditions have been satisfied," the bank said in a statement. "Furthermore, we are very concerned about the personal and financial privacy interests of our clients."
The bank says no money was ever hidden in Credit Suisse accounts, though a Canadian citizen has confessed to sheltering money from tax officials after transferring it from the bank.
The client told tax officials that he conducted the transaction on advice from a financial adviser at another bank. Credit Suisse shut down its Canadian private banking offices in 1998.
CRA has until Saturday to tell the court if it will contest Credit Suisse’s injunction. A department spokesman had no comment Tuesday.
A total of 3,000 Canadians have admitted to tax evasion since last year and have paid out $138 million. Most said they hid money overseas through the UBS and HSBC banking groups.
Reports say another 1,800 Canadians might be hiding millions in Switzerland.
Under Swiss law, Swiss banks can't be forced to reveal the names of Canadians who hold accounts in the European country. Canada can ask about specific account holders but only if it assembles evidence in Canada of possible wrongdoing.
Earlier this month, Prime Minister Stephen Harper signed a treaty with his Swiss counterpart to allow the two countries to exchange tax information for future tax years.
The deal will apply to individuals who earn taxable income in either country.
