Canadians for Tax Fairness says it is estimated that Canada loses at least $7.8 billion in revenues every year because of tax dodging facilitated by tax havens.
Ottawa (23 September 2016) — There is a powerful Bahamian connection in the mess that is Canada’s offshore tax haven epidemic, says Canadians for Tax Fairness (CTF). Now, a new leak(link is external) to the International Consortium of Investigative Journalists and media reports are blowing its cover.
Leak shows Canadian banks helped set up offshore companies
The Toronto Star(link is external) and the CBC report(link is external) that 3 of Canada’s top banks have enabled the formation of nearly 2,000 offshore companies and private foundations in the Bahamas. Analysts are quick to point out that not every transaction with a tax haven breaks the law. But tax fairness watchdogs have long warned that Canada has a series of tax treaties with some of the most secretive jurisdictions in the world.
“It just doesn’t make sense,” Richard Leblanc, a leading corporate governance expert and professor at Harvard and York universities told the Toronto Star(link is external). “Why are there so many companies registered and such a high volume in a jurisdiction that doesn’t have the population base or the economy to support it? That’s a legitimate question.”