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October 18th, 2019

$700 for Every Canadian: Why Won’t Justin Trudeau Close Tax Havens?

In June, the independent Parliamentary Budget Office (PBO) found that Canada is losing up to $25 billion in revenue every year from offshore tax havens. That’s nearly $700 for every Canadian.

The PBO report also indicates that provisions in the Income Tax Act prevent the Canada Revenue Agency from disclosing relevant tax data for individual companies, making it impossible for the PBO or the public to assess whether individual companies are avoiding Canadian taxes.

Currently, corporations have no obligation to prove that transactions to transfer funds between Canada and other jurisdictions have an economic purpose aside from reducing the amount of taxes owed in Canada.

The NDP attempted to fix this by introducing legislation that would require companies to demonstrate that such transactions have an economic substance. Justin Trudeau and the Liberals have refused to address this problem.

While these companies avoid billions in taxes, Canadians are struggling with rising costs like prescription drugs and housing.

NDP Leader Jagmeet Singh:

“Justin Trudeau has chosen the rich and powerful over everyday Canadians. He’s refusing to crack down on big corporations that aren’t paying their share of Canadian taxes. Meanwhile, he’s telling people that he can’t afford to make housing and prescription drugs more affordable. Justin Trudeau has made his choice. I choose Canadians.”