G20 countries – including Canada – are among the biggest losers when US multinationals avoid paying taxes where they do business.
This is the main finding of a new report on the global tax system, Still Broken, released by the Tax Justice Network, Oxfam, Global Alliance for Tax Justice and Public Services International today. Overall it is estimated that, in order to reduce their tax bills, US multinationals shifted between $500 and 700 billion – a quarter of their annual profits – out of the United States, Germany, the United Kingdom and elsewhere to a handful of countries including the Netherlands, Luxembourg, Ireland, Switzerland and Bermuda in 2012. In the same year, US multinational companies reported US$ 80 billion of profits in Bermuda – more than their profits reported in Japan, China, Germany and France combined.
Taxes have been a key issue in this federal election. All the parties have elaborated their tax policies in their platforms. Voters have some very different positions to choose from. Canadians for Tax Fairness has reviewed all of them and offers this analysis:
Alex Himelfarb pokes behind the real meaning and purpose of austerity in the opinion piece. He shows how the word has become code for a cycle of erosion and distrust - a bargain-basement version of citizenship.
Something to think about as we cast our votes for the Canada we want.
Many Canadians say they support raising the contribution ceiling on the Tax Free Savings Account. But it is only a wealthy minority who will actually benefit. Why are Canadians willing to support something that goes against their best interests?