Tax Dodge a new documentary produced by award-winning journalist Bruce Livesey will air on the Global Television Network program 16x9 this Saturday, November 23 at 7pm.
Canada has the lowest corporate tax rate in the G7. But that’s not good enough for some Canadian businesses.
Radio-Canada and the Globe and Mail have been hot on the story of organized crime abusing the Canadian tax system. Worrying and sadly, not a surprise. It clearly shows that Canada is not immune to sophisticated, multi-billion dollar global schemes that involve money laundering and hidden assets.
There are ways that Canada could curb corporations from using tax havens to avoid paying their fair share of taxes. The Japanese government has shown us one way to do this.
Japan has a law called the Tax Haven Counter Measure Law. It applies to any Japanese subsidiary in a low tax jurisdiction with a tax rate of 20% or less. Under this law, the Japanese parent is taxed on the undistributed earnings of these foreign subsidiaries.
How much of Canada's money is located offshore?
Where are the offshore subsidiaries of the big banks?
Click the image below to find out.
When Canadians for Tax Fairness launched our campaign against offshore tax evasion last fall, many were skeptical anything could be achieved.
Some people said the banks, corporations and wealthy tax evaders would never be held accountable. A lot of people said we were wasting our time.
Today we have an international Tax Haven Action Plan to show them.
But we'd be vain to take much credit. You were the reason it happened.
The G8 Summit has issued an action plan on fair taxes, increased transparency and open trade called the LOUGH ERNE DECLARATION.
There are some problems with it. The commitments are hedged a bit and the roadmap for action is vague. But the declaration definitely moves us forward in efforts to curb tax evasion facilitated by tax havens. Here’s the upside:
Canadians for Tax Fairness Executive Director Dennis Howlett made a presentation to the House of Commons Finance Committee about a proposed piece of legislation - Bill S-17. The government has said it is one of the tools that it wants to use to get a grip on money flowing offshore. But Howlett has different advice. Here is his testimony: