OTTAWA – The country’s top court said Thursday it will hear Iristel’s complaint that the Canada Revenue Agency is withholding money from the company over an alleged scheme to defraud the government.
The telecom said the tax agency is withholding more than $80 million from the company on allegations it was involved in a “carousel scheme” wherein it allegedly used illegitimate call suppliers that don’t report or remit tax to the government. The importer of the good in such a scheme would not report or pay taxes, sells the good down the supply chain until its exported, and then imports the good to continue the cycle.
The result from the withheld funds, Iristel claims, is “stifling jobs, smothering economic growth, and denying Canadians more competition in the wireless universe.”
The years-long legal case will be heard with another tax case involving Dow Chemical Canada.
The CEO of Iristel wrote an op-ed about the company’s fight with the agency.
