Daily Archives: October 4, 2013

Canadian Government Broadcaster hires private investigator to expose Barbados tax haven loopholes

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What don’t these Canadian journalism types get about Barbados?

The answer is simple: The Canadian laws are not being broken, they are being used as they were intended.

It’s the same with the American IRS regulations. If the Americans, Brits and Canadians don’t want their citizens to transfer income offshore, then those governments should make it illegal and rescind the tax laws that make these schemes possible. Until that time, places like Barbados, the Cayman Islands and Bermuda will continue to welcome Canadian, American and Brit business people who can’t survive with the 30, 40 and 50 percent tax rates of their homelands!

Tax avoidance: Canada-Barbados tax deal loopholes revealed

An exclusive CBC News hidden-camera investigation into the world of offshore banking found professionals in Canada and Barbados willing to help hide business profits in Barbados by exploiting loopholes in a long-standing tax saving arrangement between the two countries.

“My advice to [the Canada Revenue Agency] would be, every time you see a Barbados [company] in the structure, investigate it,” said an individual who used to run one of Canada’s largest offshore companies and also spent time in prison.

For decades, Canadian companies have flocked to Barbados with their cash in order to legally avoid paying Canadian taxes. If a Canadian company wants to expand its business outside of Canada, it can create a subsidiary in Barbados where it can park its international profits. This way, it legally doesn’t have to pay Canadian taxes on those profits.

… read the rest of the article at CBCnews Canada: Tax avoidance: Canada-Barbados tax deal loopholes revealed

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Filed under Barbados, Business & Banking, Canada, Consumer Issues