A new report, “Bay Street and Tax Havens: Curbing Corporate Canada’s Addiction,” explores the extent of corporate Canada’s involvement in known tax havens and provides clear recommendations for a strong government response.
Paradise Papers leaks from Appleby offshore law firm is much bigger than the Panama Papers and reveals details on many more Canadian companies and wealthy individuals using tax havens - over 3400.
Based on this new data and updated estimates that over $500 billion in tax revenue is lost globally due to corporate tax dodging using tax havens, Canadians for Tax Fairness has revised its estimate of Canadian tax losses due to tax havens to between $10 to $15 billion a year - up from our previous estimate of $5 to $8 billion a year.
More revenue is needed for the government to take bolder measures on child care, climate change and poverty. Over $23 billion could be raised by closing unfair and ineffective tax loopholes, curbing corporate offshore tax dodging and Taxing foreign-based E-commerce Companies to Level the Playing Field.
Small business has become a cause célèbre and the private corporation tax loopholes the daytime-TV melodrama of fiscal policy, replete with (if you believe some of the accounts) moustache-twirling villains intent on taking away the paltry savings of poverty-stricken... uh, doctors?
Federal tax reform could give Nova Scotians some of the funds we need to improve our infrastructure and public services.
There are compelling reasons to support the federal government’s proposed small-business tax proposals. Does that surprise you? Let’s pause for a moment and consider a few facts.
Tax breaks in the last 20 years have benefited Canada’s corporations and wealthiest citizens far more than the rest of us. These breaks have contributed to wealth concentration at the top and entrenched poverty at the bottom.
They have gradually starved governments of billions of dollars needed to pay for vital programs and services. The current proposals will replace some of the tax revenue that has been lost — about $1 billion yearly by some estimates. Taxes and public services have come to represent a significantly smaller percentage of our economy than in most other developed countries — it’s time to stop the bleeding.
You have to hand it to wealthy business owners. They know how to work the system to maximize their bottom line and pay as little tax as possible. Why shouldn’t they? It’s completely legal. However, it’s not only fundamentally unfair to those who pay their fair share, it also hurts poor Canadians — most of them women.