Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

The Canadian Press - ONLINE EDITION

Canadians' use of tax havens grows to $170 billion, and that's just legal flows

OTTAWA - Canadians' use of tax havens for both legal and illegal purposes appears to be growing despite government efforts to curtail the practice, says a new paper from a tax avoidance watchdog.

Canadians for Tax Fairness says new data shows the use of 10 offshore tax havens by Canadian firms and individuals rose to $170 billion last year, up $15 billion from the year before.

The data shows that Canadian money is flowing into tax havens at a faster rate than investment into non-tax haven countries.

The $170 billion figure almost certainly under-represents the problem, says executive director Dennis Howlett, since Statistics Canada has stopped tracking how much money is being stashed away in the Bahamas, which in 2010 held about $14.5 billion in Canadian money.

As well, Howlett notes the figures only show money being reported and would not capture illegal activities.

The group estimates federal and provincial governments are losing out on close to $8 billion in revenues from the reported use of tax havens alone.

The federal government has joined other advanced nations in efforts to cut down on tax avoidance and cheating, but Howlett says Ottawa hasn't matched its rhetoric with action. He notes that Revenue Canada has seen deep cuts in staffing over the past few years as part of the government's public service cutbacks.

The numbers show that about 40 per cent of all Canadian direct foreign investment is held by the finance and insurance industry and that the money flow is mostly into three offshore countries — Barbados, the Cayman Islands and Luxembourg.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media