Canada's All-time Tax Haven High

Canadian Money in Offshore Tax Havens Hits Record High

by TaxFairness.ca

OTTAWA- Canadian money stashed in 10 offshore tax havens hit $170 billion in 2013. That’s $15 billion more than in 2012, according to Canadians for Tax Fairness using new data from Statistics Canada. The money flowing to tax havens is growing at a faster rate than investment in non-tax haven countries. At least 40 per cent of all Canadian direct foreign investment is held by the finance and insurance industry.

Three offshore tax havens, Barbados, Cayman Islands and Luxembourg hold more than $124 billion of Canadian money compared to $87 billion in 2010.

“This government can’t just shrug its shoulders and be outmaneuvered by corporations and very rich people looking to get even richer at the expense of the rest of us,” says Dennis Howlett, executive director of Canadians for Tax Fairness.

“The Canada Revenue Agency needs the resources and political will to tackle tax havens.”

Federal and provincial governments lose an estimated $7.8 billion in tax revenues each year because of tax havens.

“The scale of the problem gets larger while the federal government cuts back on food safety, rail inspections and services for veterans and their families,” Howlett says.

Statistics Canada has released information on fewer tax haven countries this year. Bahamas is a popular tax haven for Canadian banks and investment firms. It was dropped from the StatsCan report even though in 2010 it held $14.5 billion in Canadian money. That can indicate that the $14.5 billion is in a few hands and not reported for confidentiality reasons, Howlett says.

If Bahamas held at least as much money in 2013 as it did in 2010, then offshore money would add up to $185 billion.

Last year, Canada made commitments to the G8 to clamp down on a tax haven epidemic estimated at $30 trillion globally. However the 2013 federal budget did little to support that commitment.

Countries or regions	2010	2011	2012	2013
All countries	637285	675020	712562	779292
Bahamas	14511	x	x	x
Barbados	49954	55881	61273	62953
Bermuda	11234	10442	13165	10696
British Virgin Islands	3494	2057	1598	1748
Cayman Islands	23970	32996	30803	30879
Cyprus	3277	3224	3203	3362
Ireland	22240	17587	11967	15976
Luxembourg	13583	19252	23737	30224
Switzerland	4495	4727	3155	6913
Hong Kong	6955	5446	3736	5089
Singapore	2237	1363	1563	2154
TOTAL	155950	152975	154200	169994
TOTAL incl. suppressed				184,915

Prepared by Canadians for Tax Fairness using  
CANSIM table376-0051 and table376-0052

Press Release - Friday May 2, 2014