Mark your calendar! On Friday, March 3 at 9pm local time, CBC's Fifth Estate will broadcast a documentary that is a indictment of the abuse of the tax system by the wealthy, the powerful and the criminal. Warning: This documentary might induce outrage and anger.
A new report commissioned by a group of MPs in the European Parliament shows that the Royal Bank of Canada directed the creation of 1199 offshore companies in tax havens including Bahamas, Switzerland, Hong Kong, Jersey, Guernsey, and the Isle of Man. It also shows RBC - under a different logo - was associated with the creation of 90 more offshore companies in those same low or no-tax jurisdictions.
OTTAWA - Documents that show that Finance Minister Bill Morneau knew that most of the benefit of the stock option loophole fell to a small group of very wealthy CEOs and that he received “urgent” messages from business lobbyists days before the federal budget, raises serious questions about the influence of Bay Street within the Liberal government.
“The Prime Minister campaigned on a promise to get rid of the stock option loophole which has put billions back into the pockets of wealthy CEOs including bank presidents, real estate moguls and heads of powerful multinationals,” says Dennis Howlett, president of Canadians for Tax Fairness. “Those guys send their lobbyists to talk to the Finance Minister and – just like that - their commitment disappeared.”
Earlier this month the Toronto Star published an editorial calling on Justin Trudeau to make tax fairness a priority for 2017. The editors argue that fixing the tax system would help restore confidence in the leadership and vision of the government. Good politics. But let's talk money for a moment.
Canada would have billions in increased revenues each year if the government gets serious about tackling tax havens and plugging loopholes like the stock option deduction and a host of others that have us hemmoraging money. Right now that money goes straight into the pockets of very wealthy individuals and corporations who are playing the system. Why is this even an option for our political class?
A new report out by Oxfam names Bermuda as the world's worst tax haven. Here in Canada, wealthy individuals and corporations have $22.4Billion parked there. Read on to find out which tax haven Canadians use most.
Canada's five worst tax loopholes provide 99% of their benefit to the richest half of Canadians and cost the federal government $10.4 billion in 2011. That's the conclusion of an in-depth study of tax expenditures published by the Canadian Centre for Policy Alternatives.
CCPA Senior Economist David Macdonald examined who benefitted from a list of 64 personal income tax expenditures. They ranged widely from the Guaranteed Income Supplement to the Stock Option deduction. He found that 59 of them provide more benefit to the top 50% of income earners than the bottom half, with the largest share going to the richest 10%. Using data from 2011 he found that the cost of those 59 expenditures totalled $100.5 billion.