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.
There will be a new government sworn in in less than two weeks. One of the first order of business should be to straighten out a tax system that isn't working for most of us. Here's how that process could start.
A smart tax policy which includes more transparency and less reliance on buying support with tax cuts is key to a strong economy. Instead Stephen Harper has treated tax like a political trick or treat.
If you haven't already cast your ballot - and even if you have - here are some important things to think about when it comes to expecting good fiscal management from our government.
No question the Canada Revenue Agency needs help to get back on track. But new reports of backroom meetings at the highest level about the agency shows a serious lack of critical judgement. Or just plain cynicism and entitlement. You decide.
VANCOUVER – The offshore tax haven practices by the owners of Larco Investments is the latest example of why the federal government needs to get a grip on the burgeoning offshore tax haven industry.
Larco is one of Canada’s largest real estate developers. And as a result of a controversial sale-leaseback deal made with the federal government in 2007 they own multiple buildings that used to belong to Canadians. Now several government departments, including the Canada Revenue Agency pay millions of dollars in rent to Larco.
We joined our partners at Unite Here as they released a report Hide and Seek: How a Government Partner Uses Tax Havens to Avoid Canadian Taxes. It details how the owners of Larco moved millions of dollars in global revenues offshore between 1999 using the services of the much-investigated HSBC bank. Material for the report became public in the United States during Larco’s application to purchase a Las Vegas casino. It says that while there is no evidence of illegality, Larco is one of a string of corporations that have set up offshore subsidiaries and trusts, which in many cases are used to shift profits to reduce taxes. The report also asks what steps are being taken by the CRA to curb growing use of tax havens by wealthy individuals and corporations.