BC Liberals gave millions in tax rebates to scam company whose assets are being confiscated

By ThinkPol Staff

British Columbia’s director of civil forfeiture is taking action to confiscate properties and bank accounts associated with a fraudulent Vancouver financial company, which received million in tax rebates under the former BC Liberal government.

The director is alleging that proceeds from illegal activities committed by PacNet Services Ltd were used to purchase and maintain those assets.

PacNet and its subsidiary Chexx Inc were core members of the AdvantageBC program, which entitled them to a tax refund of up to 100 per cent of their corporate income taxes at a cost of $140 million to the province[1]2015-Annual-Report_AdvantageBC_wo.

US Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated the the corporations as a significant transnational criminal organization and seized their bank accounts last fall on the grounds that the companies have a lengthy history of money laundering by knowingly processing payments on behalf of a wide range of mail fraud schemes that target victims in the United States and throughout the world[2]https://www.treasury.gov/press-center/press-releases/Pages/jl5055.aspx.

“PacNet has knowingly facilitated the fraudulent activities of its customers for many years, and today’s designations are aimed at shielding Americans and the nation’s financial system from the large-scale, illicit money flows that are generated by these scams against vulnerable individuals,” John E. Smith, OFAC Acting Director said. “Treasury will continue to use its authorities to respond to the evolving nature of transnational organized crime.”

PacNet, with operations in Canada, Ireland, and the United Kingdom, and subsidiaries or affiliates in 15 other countries, is accused of knowingly processing payments relating to fraudulent solicitation schemes, resulting in the loss of millions of dollars to US consumers.

BC Liberals received $5.8 million worth of donations from members of AdvantageBC, which is headed by former premier Christy Clark’s ex-campaign chair, who is a former BC finance minister responsible for expanding the program’s tax incentives.

While the tax deductions were offered by the Ministry of Finance under International Business Activity Program, the International Business Activity Act passed under former BC Liberal Premier Gordon Campell requires corporations to first join the not-for-profit AdvantageBC to apply for the deductions.

BC NDP came to power on a promise to crackdown on such shady schemes that the BC Liberals ran.

“Every day, it’s getting harder and more expensive to live in BC, and the only people getting ahead are Christy Clark and her rich friends,” the current BC Attorney General David Eby told voters during the campaign. “British Columbians deserve to know how much of their hard-earned tax dollars Christy Clark has secretly handed to rich donors.”

True to their words, the NDP promptly shut down the International Business Activity Program after coming into power, despite best efforts by the opposition to delay its demise[3]http://advantagebc.ca/blog/elimination-of-the-international-business-activity-program/.

[Photo: BC Liberal Leader Andrew Wilkinson attending an AdvantageBC event. Credit: Advantage BC]

References   [ + ]

1. 2015-Annual-Report_AdvantageBC_wo
2. https://www.treasury.gov/press-center/press-releases/Pages/jl5055.aspx
3. http://advantagebc.ca/blog/elimination-of-the-international-business-activity-program/

6 Responses to BC Liberals gave millions in tax rebates to scam company whose assets are being confiscated

  1. nonconfidencevote says:

    The BC Liberal Govt couldnt have cared less about giving away millions in TAXPAYERS money.
    Why should they?
    It doesnt cost govts anything personally to hand out barrels of cash to business lobbyists and their ilk.
    Perhaps it should.

    Ban lobbying.
    Make govts and politicians personally financially responsible for their poor decisions.
    Betcha the budget would be balanced after that.

    • David Gibson says:

      There is no suggestion anywhere ninths story of giving taxpayer money to Wilkinson’s client. Rather, the reverse might have been true. CHECK DONATION RECORDS.

  2. Rick says:

    The NDP government is also guilty of the same thing . In the past the NDP perpitrated the biggest fraud on BC residents when the started the Fast Ferry project . This was direct fraud not by way of some other company doing something illegal.

    • V Jose says:

      you must be kidding! “Fast Ferries” became a convenient political smear object by Gordon Campbell and subsequent B.C. Liberals; that has regurgitated ad nausea’m ….. to distract from their own shady dealings. Think Bourke Mountain Coquitlam taken out of the ALR & sold below Market Value to a big Corporate Donor to Christy Clark. Why….if the “Fast Ferries” were such a write off, were millions$$$ pumped into for refurbishing and then sold off at a song. The “Fast Ferries” then sailed accross the Pacific and are today actively sailing in the waters of Turkey!….

    • David Gibson says:

      LOL! The Fast Ferries were hardly a fraud. If you knew anything about the topic, you would recognize it as a classic business disaster. It was driven mostly by political motivation – “We will show those capitalist pigs that we too have good business sense, and build a whole new industry for BC.” And the ego of the Premier was at stake. Does that remind you of another “whole new industry” touted by a later Premier with ego – and votes – at stake? Not fraud, just fuckup.

    • Rick Koechl says:

      To Rick from another Rick,
      Your suggestion amazes me. Yes…the Fast Ferries were ultimately called a Fiasca by then Gordon Campbell, who capitalized on the politics. Yet,….he also began the Site C project which will ultimately make the Ferries look like microscopic potatoes. (the NDP will carry equal weight by continuing the project) Let us not forget the other BC Hydro fiascos, such as the North West transmission line, (doubling in price) and the DCAT line near Dawson Creek….the Transmission line to nowhere.

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