MEDIA RELEASE: November 6, 2017
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.
“This is still just the tip of the iceberg.” says Dennis, “There are more than a dozen large offshore law firms like Appleby, and many more accounting firms and financial institutions, that specialize in offshore services for large companies and high net worth individuals.”
The CRA has announced that they are taking action but that will not be enough. The government needs to reform corporate tax laws to effectively curb tax haven abuse. A first step would be to support or introduce a law similar to Bill C-362, MP Murray Rankin’s private member’s bill that would require any offshore subsidiary to have ‘economic substance’ to be considered a separate legal entity for tax purposes.
“While the government has been taking action on going after wealthy individuals using tax havens, little has been done to tackle the use of tax havens by Canadian corporations.” says Dennis Howlett, “In fact the government is facilitating corporate use of tax havens through treaties and secrecy laws like the lack of a public beneficial ownership registry.”
Canadians for Tax Fairness is a national organization that advocates for a modern, effective and fair tax system.
For more information: Dennis Howlett Canadians for Tax Fairness 613-863-3670
Read more about this issue on the Tax Fairness website.