“The amount of money invested in tax havens in the world globally at the moment is at an all-time high,” Don Davies, NDP MP for Vancouver Kingsway, BC, said. “In 2011, almost 25% of Canada’s investment was invested in the world’s top 12 tax havens.”
“According to a Tax Justice Network report from 2011, Canada loses an estimated $80 billion per year to all forms of tax evasion,” he added. “The government does not have a system for estimating and publishing the amount of lost revenues due to offshore non-compliance.”
“We are dealing with a noted tax haven, one of the most notorious drug laundering centres in the world,” he added. “The U.S. Congress said it would not be safe or prudent to sign a free trade agreement with such a country until it first had a tax exchange information agreement in place. However, in this House, the government is asking parliamentarians to go ahead and give a most favourable nation status free trade agreement that would allow money and investment to flow with very little barrier between our two countries, when we do not have a tax exchange information agreement in place, but one might happen in the future. That is imprudent. That is irresponsible.”
Harper signed trade deal with Panama encouraging tax evasion | ThinkPol
Ottawa (15 Nov. 2013) - While the federal Conservative government talks tough on crime, the Financial Secrecy Index (link is external) released last week paints a very different picture.
Even when rules are in place, there is no guarantee they will be enforced. Both the Organisation for Economic Co-operation and Development and the Financial Action Task Force (link is external) have expressed concern about the resources allocated to enforcement.
The response of the federal government was to eliminate the Canada Revenue Agency's Special Enforcement Unit, which investigated tax evasion by organized crime.
The trade deal with Panama was also identified as a problem in the Secrecy Index.
These days, the trade deals Canada is entering into are more about protecting investments than opening markets for Canadian goods. With Panama, “viewed by many criminologists as one of the tax havens that does the most to support the laundering of drug trafficking profits,” the question being asked is whose “investments” are being protected.
Conservative government soft on crime, Financial Secrecy Index reveals | National Union of Public and General Employees