Canada-Barbados tax treaty costs Canada billions in lost taxes

canada_barbados_flag

submitted by Taxing Stuff!

Examples of tax treaty reality: Every year Canadian “investors” send $40-70 billion to Barbados, the equivalent of over $140,000 for every man, woman and child, ostensibly as Foreign Direct Investment (FDI), but most of it doesn’t stay in Barbados to build companies or jobs. Despite massive injections of “investment” into Barbados from Canada that is equivalent to six or more times the GDP of Barbados, the per capita GDP in Barbados is half that of Canada or the US.

There is no “brotherhood” here where two countries agree to invest the same amount in each other: In contrast to Canadian-US FDI exchange of approximately one dollar matched by each country, for every dollar of Canadian FDI to Barbados, Barbados sends a penny of FDI back. Under the terms and transparency of the Canada-Barbados Tax Treaty, Canada lost $1.5- 2.5 billion in taxes last year. Multiply this by numerous tax treaties with tax havens, and multiply it again by the fact that many of these treaties are decades old.

5 Comments

Filed under Barbados, Canada

5 responses to “Canada-Barbados tax treaty costs Canada billions in lost taxes

  1. What bim needs to do is utilize the trade agreements that has been in place for years, with canada. Encourage small business people (not the greedy monopolies on the island who has already drained the well) to do business in canada to help generate foreign exchange for bim.

  2. Sith

    Bananas are 59 cents us per lb in Canada and about 1.09 us per lb at leading supermarkets in Barbados. Tell me what we can trade and be competitive at. Fixed exchange rates hurt exports.

  3. Anonymous

    Maybe if the banks let more businesses do ecommerce more trading with Canada can take place.

  4. sith

    i on vacation for a bit in miami. not only are bannas 50% cheaper in miami than on the island I just bought a 1.75 litre of Carribean rum for $13.47 US. That is $26.94 Barbados…..aint seen prices that low in Barbados for a long time. I will have to bring a few bottles back with me. Maybe we should import rum from the USA.

  5. Well Well

    Yeah and bajan malts sell cheaper in the US and Canada than in Bim.