Canadians for Tax Fairness concerned about inaction on Panama Papers
It is estimated that the use of tax havens is costing federal and provincial governments at least $7.8 billion in lost tax revenue. Low and middle income Canadians are the ones paying for that missing $7.8 billion in tax revenue.
Ottawa (11 Aug. 2016) — The leak of the Panama Papers earlier this year provided an unprecedented opportunity for governments to crack down on the use of tax havens. 11.5 million documents were made public from a Panama law firm that helped people and businesses set up shell companies to avoid paying taxes.
Canadians were among those shown to be using tax havens. And the Royal Bank of Canada was involved in setting up 370 corporations registered in tax havens.
Canadian government sitting on its hands
What concerns Canadians for Tax Fairness is that there is no evidence the Canadian government is taking action. In a recent release (link is external), Canadians for Tax Fairness points out that recently both the CRA and the Minister of National Revenue have been silent on the issue.
Tax havens cost the public $7.8B a year
Canadian corporations reported having $199 billion in the top ten tax havens in 2014. Then there’s what’s not being reported and what wealthy individuals are hiding in tax havens.
It’s estimated that the use of tax havens is costing federal and provincial governments at least $7.8 billion in lost tax revenue. Low- and middle-income Canadians are the ones paying for that missing $7.8 billion in tax revenue.
This loss in tax revenue means cuts to services we rely on. It means higher tax bills for average Canadians.
Given how much tax havens cost low- and middle-income Canadians, cracking down on them should be a priority.