MEDIA RELEASE: Revera report reveals urgent need to improve transparency and accountability.
For immediate release: Jan 28, 2021
OTTAWA – Canadians for Tax Fairness is calling for reforms in the wake of a new report exposing how long-term care giant Revera—owned by the Public Sector Pension Investment Board—has aggressively dodged taxes for years. Tax Dodging by a Canadian Crown Corporation: Revera Living Making a Killing was produced by the Centre for International Corporate Tax Accountability and Research (CICTAR)
The report demonstrates how Revera generates large revenues from its UK care homes, but shifts profits to shell corporations in tax havens such as Luxembourg, Jersey and Guernsey. Revera’s aggressive tax dodging is at odds with its stated responsible investment principles and raises concerns about its long-term care operations in Canada and the United States.
“Unfortunately, Canada has very weak corporate transparency rules, so it is impossible for the public to know how much profit Revera makes in Canada from its retirement and long-term care operations, and what it does with it,” said Toby Sanger, an economist and director of Canadians for Tax Fairness. “In Ontario alone, Revera receives over $400 million annually in public funding for long-term care. The public has a right to know where this money is going and whether companies are avoiding the taxes that pay for this care.”
CICTAR’s report highlights how little corporate information is available in Canada. It was able to obtain financial information on Revera’s operations elsewhere because its subsidiaries were located in the U.K., which has stronger disclosure requirements.
C4TF supports the report’s calls to hold Revera and other private LTC operators to stronger reporting requirements. Canada should also introduce broader reforms to strengthen corporate transparency and accountability, including:
- Introduce public country-by-country financial and tax reporting by large multinationals, and more comprehensive corporate disclosure as the UK has.
- Ban anonymous shell companies and improve corporate transparency by establishing a pan-Canadian public registry of corporate beneficial owners.
- Treat multinationals as single entities for tax purposes to prevent tax dodging through subsidiaries or affiliated companies.
Canadians for Tax Fairness
Canadians for Tax Fairness is a non-profit organization that advocates for progressive taxes to fund important public services, reduce inequality and strengthen the economy.