The international tax dodging industry is profiting from anemic international co-operation on tax rules and standards,” says Canadians for Tax Fairness executive director Dennis Howlett. The Panama Papers, Luxembourg Leaks, and other global schemes have exposed large-scale tax evasion and avoidance. Individual governments can make some changes to stop it – but just like fighting international terrorism or environmental degradation – countries are more effective when they work together.
Multinational e-commerce outfits like Facebook and Google are hoovering profits in Canada and then shifting them offshore without paying tax on them.
It is legal because outdated tax rules say they are deemed to not be "carrying on business" here. So while CEOs make billions in profits, students face a mounting pile of debt and are often not able to feed themselves properly.
Donald Trump’s contention that it is “smart” not to pay your fair share of taxes has provoked public outrage. But there are lots of Canadian multinationals incorporating that mantra into their business plans.
There is a powerful Bahamian connection in the mess that is Canada's offshore tax haven epidemic. Now a new leak to the International Consortium of Investigative Journalists and media reports are blowing its cover.
The Parliamentary Finance Committee will soon start hearings to find out how we should be spending our tax money and this summer they accepted briefs from interested organizations.
"There are three ways the government could raise additional revenue," says Dennis Howlett, executive director of Canadians for Tax Fairness. "These options, if fully implemented, could raise an additional $20 billion annually."