Tag Archives: Barbados Offshore Tax Haven

Canadian Court upholds Revenue Canada – disallows “Barbados Structure”, penalizes Canadian company’s use of offshore Barbados subsidiary.

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 Marzen Artistic Aluminum Ltd. v. The Queen (2014 TCC 194)

I’m don’t know much about this kind of thing, but it doesn’t sound good for Barbados. According to our Google Alerts, the tax sector is abuzz with this latest Canadian ruling that runs 80 pages. (download the ruling here – PDF)

Comments from the cheap seats?

In a lengthy set of reasons, the Tax Court upheld all but a fraction of the CRA’s reassessment of the taxpayer, such reassessments having disallowed the deduction of approximately $7.1M of fees paid by the Canadian taxpayer to its Barbados subsidiary. The Court also upheld the imposition of a penalty under subsection 247(3) of the Act…

… from Dentons Tax Litigation blog: Marzen: Artistic Barbados tax plan defeated

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Filed under Barbados, Canada, Offshore Investments

Economist and Investigative Journalist James S. Henry: Barbados debt crisis and the “offshore haven” industry

“The ultimate piece of bad news for ordinary Bajans, as they call themselves, is that their Social Security fund has essentially invested about 80 percent of its assets in Barbadian public debt, which is now almost worthless. And so, you know, we’re looking at a major social catastrophe in paradise here…”

So just last month, Barbados tried to raise $500 million of public debt in the U.S. market, and they had to withdraw the debt offer. And now they’re really looking at very serious IMF-type conditionality in order to get out of this situation. So, you know, the ordinary middle-class in Barbados is going to experience higher taxes in the form of excise and VAT taxes.

And meanwhile you have this very wealthy elite. I’m sitting in a hotel where the average room is $350 a night. Two doors down from this hotel is a room that–there’s a hotel the charges $4,000 a night up to $12,000 a night with a two-week minimum. You know, they have this just very split-level kind of society where the very wealthy people from all over the planet come to Barbados and enjoy the beaches and the beautiful natural environment, but you have regular Barbadians having to actually pay most of the cost of government through VAT taxes.

The ultimate piece of bad news for ordinary Bajans, as they call themselves, is that their Social Security fund has essentially invested about 80 percent of its assets in Barbadian public debt, which is now almost worthless. And so, you know, we’re looking at a major social catastrophe in paradise here, and, I think, an important thing for us to take a look at in the United States, not because Barbados is a major trading partner in the U.S., but because it is a foreshadowing of what can happen if we are going to be utterly unwilling to raise taxes on big companies and the wealthy in order to help tackle our debt crisis.

… from The Real News transcript of the above video.

James S. Henry is a leading economist, attorney and investigative journalist who has written extensively about global issues. James served as Chief Economist at the international consultancy firm McKinsey & Co and as an investigative journalist his work has appeared in numerous publications like Forbes, The Nation, and the The New York Times. He was the lead researcher of the recently released report titled ‘The Price of Offshore Revisited.’

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Filed under Barbados, Barbados Tourism, Economy, Offshore Investments

Canadian Parliamentary report targets Barbados and other offshore banking and corporate centres

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I have a question for our glorious leaders of the DLP and BLP…

Tourism is dying and our offshore banking sector is under serious attack. What is this island going to be doing to earn foreign revenues in 10 years time? Folks like Dr. Duguid and Owen Arthur won’t care because they are rich enough to bail out, but what will our children do to earn a living?

“Canadian banks and other financial institutions should be required to find out the beneficial owners of corporations or trusts that are transferring money overseas, according to recommendations in a new report on tax evasion by Parliament’s finance committee.

The all-party finance committee reported Wednesday on the results of a lengthy review of tax havens, but the study immediately drew criticism from NDP and Liberal members who said its 11 recommendations are too vague and will do little to halt the tide of money flowing into offshore tax havens.”

… from the Globe and Mail article: Banks urged to find out who is sending money abroad

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