Canada Says Missing 2 Billion In Taxes From Merck – Merck Says Money Sent To Barbados!

UPDATED – Oct 22/06 3am BDS

The Canadian Broadcasters Corp has done a story on the Merck taxes and says…

“Canada Revenue Agency is going after a portion of the income from sales through the affiliate because Barbados doesn’t collect taxes on pharmaceutical royalties.” (link here)

Original BFP Posting…

You know what they say… a billion here, a billion there and pretty soon you’re talking real money!

Who said, “I just want enough to whet my beak?”

Was that Owen or Mia?

Oh… sorry… that was the mob boss in Godfather II the day before he was shot by Vito (the Godfather) as a young man in New York City. (Love that movie!)

Anyway, somebody “whet their beak” for sure with this…

Ottawa claims Merck owes $2B in tax
Oct. 20, 2006. 12:56 PM

Revenue Canada is seeking $2 billion in unpaid taxes from pharmaceutical giant Merck Frosst, but Merck says the assessment is “without merit.”

The Montreal newspaper La Presse reported yesterday that the federal department sent a notice to the company this month seeking taxes on a portion of the global profits from its popular drug Singulair, an asthma treatment that was developed in Montreal. The claim covers taxes for 1998 to 2004.

Merck says it transferred a part of its profits from the drug to Barbados.

from Toronto Star Daily (link here)

6 Comments

Filed under Barbados, Crime & Law, Offshore Investments, Politics & Corruption

6 responses to “Canada Says Missing 2 Billion In Taxes From Merck – Merck Says Money Sent To Barbados!

  1. waver

    Could someone explain the point of mentioning Bdos in that article ?
    He says he transfered part of the profitys to Bim….so what ??? Where is the implication for somehing in Bim ??

  2. Jason

    The story is interesting because we have a major segment of our economy founded on the hiding of monies offshore. Canada has been vocal about Barbados being a hiding place and I think it was mentioned in their Parliament a couple of times with the intent of changing their laws.

    Their former prime minister was criticized and lost an election in part because he hid a business in Barbados.

    Not everything on this blog has to have an immediate “wow, scandal!” factor to be interesting to those of us who are more intelligent than waver.

  3. let the light shine in

    waver

    Whats it got to do with BIM?

    well —lots of things

    For one thing, How about the Billions of Dollars that flow through Barbados yearly from Canadian companies and individuals, originally fostered by the friendship of Errol Barrow and Pieere Trudeau at the London School of Economics.

    Presumably this special Tax Treaty , unavailable to any other caribbean country with Canada, was set up to help improve the standard of living and quality of life of each and every Barbadian citizen and engender principles of democracy including transparency, accountability, concern for the environment, independent judiciary etc and not the reverse stripping hard earned monies from Canadian citizens to be diverted to offshore accounts to help pay unearned consulting fees, inducements etc

    Merck will have to prove that they have fairly and accurately paid their fair share of taxes in Canada before availing themselves of the Tax Treaty. If they have saved many millions of Dollars maybe they could even contribute to some of the serious environmental concerns in Barbados such as the creation of the first National Park.

    After many years of a favourable Tax Treaty, Canadians and Barbadians need to ask themselves if they are getting value for their money

    Perhaps the BFP can explore this issue thoroughly and in depth over the next several months?

  4. hants

    Canada has a Prime Minister who will do what he can to crush the Liberals and Barbados could lose Tax haven status with Canada if the Conservatives are reelected with a majority in the coming Elections next year.
    If we are lucky they may not make it an Election issue.
    Lets hope this problem goes away quietly.

  5. hants

    The current Canadian Prime Minister is a strong supporter of George Bush.
    He is unlikely to develop a close relationship with the Barbados government.

  6. BFP

    Hants said

    “The current Canadian Prime Minister is a strong supporter of George Bush.
    He is unlikely to develop a close relationship with the Barbados government.”

    The other side of the story is that recently Barbados seems to have done everything possible to side with anti-American interests (and anti-British interests for that matter).

    While the Barbados government will say that this was all about Bajan interests, often the government’s actions and attitudes reek of simple anti-Americanism for it’s own sake.