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.
Canadians for Tax Fairness welcomes the news that the government is going ahead with private corporation tax reforms. And the tweaks announced today sound reasonable. But a cut in the tax rate to 9% for small businesses is unlikely to do anything to boost jobs or the economy and could cost more than the savings from closing the private corporation tax loophole.
And calls on government to close other unfair and ineffective tax loopholes.
Dennis Howlett, Executive Director of Canadians for Tax Fairness appeared before the House of Commons Finance Committee at its September 26 hearing on Tax Planning Using Private Corporations. He supported the governemnt's proposed changes to limit the use of private corporations to avoid paying taxes, but called for further action to close other loopholes such as the stock option deduction, the capital gains exemption and the business entertainment tax deduction.
Ottawa, September 27, 2017 – Over 14,000 Canadians from across the country have signed the message to Minister Morneau stating: “We support your reforms to start making the wealthy pay their fair share in tax. These loopholes have let a small group of very wealthy Canadians take advantage of a system that wasn't meant to be used as a tax shelter for the rich.“
Organizations from different sectors across the country representing over 4 million Canadians have come together to form the new Coalition for Tax Fairness — in support of the federal government’s efforts to close unfair tax loopholes that allow some wealthy Canadians to reduce their taxes using private corporations. The group issued a joint statement today. Membership is open and the coalition is growing fast.
KPMG. SNC Lavalin. These are only a few of the companies that have been awarded lucrative supply contracts from our federal government. Trouble is, they, and many other companies have used tax havens right under the government's nose. And the current rules do nothing to stop them from geting those contracts. It is time to change the rules and tell companies that tax haven use disqualifies them from taxpayer money.