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Low Tax Haven Jurisdictions Under Scrutiny

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Submitted by Not Taken
Tony Merchant, top Canadian lawyer and his family among those leaked on offshore list
Tony Merchant, top Canadian lawyer and his family among those leaked on offshore list

Unlike the mainstream media in Barbados which seems disinclined to report on the financial shenanigans of its politicians/public figures (except the $75,000.00 cheque), the media in Canada has no such hesitation, as seen at the attached link (see related articles) to CBC website.  Other major media in Canada are running with the story. While 38 media outlets around the world are probing the data leaks reported in the material reported in Canada by CBC, I do not expect to read about it in the Barbados papers

While Barbados does not figure prominently in this and related CBC articles, I think Barbados authorities should be concerned. Barbados is the third largest recipient of Canadian outward Foreign Direct Investment, after the USA and the UK; with the principal industry being “financial services”, which I expect is mainly in “offshore” accounts. Canadians are believed to to be the largest depositors in Barbados offshore bank accounts. It may well be the case that all of those a legal.

Notwithstanding, with the spotlight being shone on the issue of  “offshore accounts” and “tax havens”, and Canadian Finance Minister Jim Flaherty’s pledge in last week’s budget the government will bolster its efforts to fight offshore tax evasion, including launching a new whistleblower line that pays rewards for tips, improving compliance programs and demanding more information on certain financial transactions; it seems likely that some Canadians “investors” will choose to repatriate their foreign direct investments to Canada rather than face the scrutiny for Canada Revenue Agency

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74 responses to “Low Tax Haven Jurisdictions Under Scrutiny”

  1. Not Taken Avatar
    Not Taken

    @Sargeant and Well Well

    I hear what you say, same old- same old; all talk no action

    I think it is going to be different this time, for three reasons

    1. They need every cent they can put their hands on to meet the 2015 balanced budget platform for the next election

    2.. They have set up or are setting up the snitch line. If the snitches report names etc and nothing happens and they do not get their 15% cut they will leak the info.

    3. The recent mega leak has put the spotlight on the tax-haven – tax evasion issue, the media have ramped up attention and the public (voters) will demand action. See Diane Francis’s article in April 6 Financial Post @ http://opinion.financialpost.com/2013/04/05/tax-avoidance-becoming-bigger-than-the-u-s-economy/

    Given that Barbados is by far the largest recipient of Canadian offshore business, it is certain to be at the top of the hit list

  2. Sargeant Avatar
    Sargeant

    Here is a snippet from the story about the wealthy family…..

    http://www.cbc.ca/news/canada/story/2001/06/28/bronfman010628.html

  3. Hants Avatar
    Hants

    @Sargeant ,the conservatives have probably taken this long to act because some of their campaign contributors and party supporters are very wealthy and likely to use low tax jurisdictions.
    They have to make sure they don’t bite the hands that feeds them.

    This is probably why the focus is now on Tax EVADERS as opposed to those who use legal low tax jurisdictions.

  4. Hants Avatar
    Hants

    The other thing I find interesting is that the Government of Canada was complicit in the creation of the low tax arrangement with the Barbados government and a former Prime Minister of Canada had a billion dollar business registered in low tax Barbados.

    It takes two to tango and tango they did but now one dance partner has decided to kick the other to the curb.

  5. David Avatar
    David

    @Not Taken
    What this matter exposes is the hypocrisy which motivates developed nations. What Canada should be clamoring for as well is to root out dirty money.

  6. Hants Avatar
    Hants

    David am I correct in stating that the low tax agreement was sanctioned by the Canadian and Barbados Governments?

    It does not matter which party was in power at the time.

  7. David Avatar
    David

    @Hants

    We can cut to the chase by asking another question – who has final say in making the rules in this game?

  8. Hants Avatar
    Hants

    Yes David , we know who has final say but we should learn to be very careful when making deals with our “more powerful” friends.

  9. Well Well Avatar
    Well Well

    Hants………………if the other dance partner had made public in Bim about the dances being held tax wise, both parties would have danced all the way to the bank, instead it was kept a secret and only one party danced away with billions………………….it was brought to my attention recently that billions passes thru Bim on a daily basis to be distributed world wide, it is said South Africa is one country involved, this means Bim is still a clearing house.

  10. Hants Avatar
    Hants

    @Well Well,

    let us wait and see if the Canadian Government passes legislation to prevent Canadian companies from using offshore tax havens like Barbados.

  11. Well Well Avatar
    Well Well

    Hants……….it is a two way street, Bajan companies could have established companies in Canada and paid taxes in Barbados increasing foreign exchange to the island, very few people did this, only who knew……….this was brought to my attention some time ago, when I checked the records it was mind boggling that not enough bajan companies took advantage.

  12. Hants Avatar
    Hants

    Two sides to another story. The truth will out.

    http://www.cbc.ca/news/canada/british-columbia/story/2013/04/05/bc-rbc-foreign-workers.html

    http://www.torontosun.com/2013/04/07/union-criticizes-rbc-for-replacing-canadian-staff-with-foreign-workers

  13. David Avatar
    David

    @Hants

    Banks will do what it takes to protect its profit margins in a tough market.

  14. Sargeant Avatar
    Sargeant

    @Hants
    Well that’s a twist, usually the jobs are outsourced direct to India now the Indians are coming to take the jobs. The response from the Minister is pure public relations, this PC Gov’t has spent a lot of time courting certain ethnic groups for their votes with Minister Kenny in every photo op and Finley aint going to do a darn thing.

    The unions could squawk all they want they don’t vote PC anyway and the shareholders will be happy lower wages and benefits means increased profits and dividends for them and increase bonuses for the Bank executives.

    All the Banks have outsourced jobs to India but RBC really rubbed it in their employees faces, the bank will tell them to take their package or leave it.

  15. Well Well Avatar
    Well Well

    Outsourcing certain jobs directly to another country backfired on the US, its better to bring the employees in, taxes get paid and you can kick them out when you feel like it.

  16. David Avatar
    David

    Outsourcing is an offshoot of capitalism and greed. In an attempt to reduce the cost of production you source cheap labour centres which obviously competes with the domestic market. The inevitable occurs. The ignorance of it all.

  17. Crusoe Avatar
    Crusoe

    David | April 8, 2013 at 4:57 PM | Outsourcing is an offshoot of capitalism and greed. In an attempt to reduce the cost of production you source cheap labour centres which obviously competes with the domestic market. The inevitable occurs. The ignorance of it all.
    ———
    Hear, hear. About 10 years ago I told a friend of mine that it would backfire and the US Companies would regret doing so, he disagreed. Now as we see, they are trying to repatriate the knowledge base.

  18. Hants Avatar
    Hants

    So you all understand how difficult it can be for small economies like Barbados to produce goods in this greedy competitive capitalist world.

    But we Bajans are smart and lucky people so sooner or later we will realise that the foundation of our survival is Agriculture.

    I have already mentioned the minimum wage ($10.25) plus 50 cents an hour for low skilled labour in Canada where employment agencies are hire the labour and there are no pension or health insurance benefits.

    The first world capitalist countries have all kinds of tricks and schemes to pay low wages.

  19. Hants Avatar
    Hants

    Read page 50 of BarbadosToday.

    Interesting comments about the Tax controversy.

  20. David Avatar
    David

    Here is the link Hants:

    http://www.barbadostoday.bb/2013/04/08/no-cheats/?utm_source=rss&utm_medium=rss&utm_campaign=no-cheats

  21. Not Taken Avatar
    Not Taken

    David
    Here is the original article

    http://www.ottawacitizen.com/opinion/op-ed/Enough+with+haven+hysteria/8206152/story.html

    Interesting sites

    http://www.bizapedia.com/canada/BERNARD-SHINDER-CONSULTANTS-LTD.html

    http://canadiancompanies.landoffree.com/company/Bernard_Shinder_Consultants_Ltd.

    http://shinderconsultants.com/assetprotection.html

    Mr Shinder is not exactly a disinterested neutral observer. He make his living doing this tax (asset protection) stuff

  22. The Tax Haven Gaining Momentum | Barbados Underground

    […] matter about which I write is the “Tax-Haven” issue. I see that the post Low Tax Haven Jurisdictions Under Scrutiny has slipped into the older posts and is generally out of view. I may be over-reacting to or […]

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