In his time at Brookfield Asset Administration, Liberal Chief Mark Carney personally co-chaired two funding funds devoted to the transition to a net-zero carbon economic system, price a complete of $25 billion.
These funds had been registered in Bermuda, amongst different areas, permitting buyers to learn from important tax benefits, in accordance with info obtained by Radio-Canada.
The funds created whereas Carney was on Brookfield’s board of administrators are the Brookfield International Transition Fund ($15 billion) and the Brookfield International Transition Fund II ($10 billion), launched in 2021 and 2024 respectively.
In accordance with the Ontario Enterprise Registry, the funds had been registered in Bermuda underneath the names of BGTF Bermuda GP Ltd. and BGTF II Bermuda GP Ltd.
In each instances, the provincial registry signifies that the “governing jurisdiction” for the companies is positioned in Bermuda.
Tax havens extensively used
The authorized construction of the Brookfield funds is complicated and contains many jurisdictions. Nonetheless, consultants say their registration in Bermuda raises questions on Carney’s strategy to fiscal coverage in Canada.
“All kinds of firms are doing this … however [Brookfield] are one of many largest customers of this sort of scheme,” mentioned Silas Xuereb, political analyst with the group Canadians for Truthful Taxation.
He says he hopes the subsequent federal authorities will impose new limits on the usage of tax havens, particularly by ending bilateral agreements with international locations like Bermuda and strengthening worldwide treaties to curb tax evasion.
Xuereb mentioned it might appear “ironic” that environmental funds had been registered in a tax haven.
However he mentioned Carney was understandably motivated by revenue within the personal sector, and hopes that the Liberal chief “could have very completely different targets now that he’s in political energy.”
Conservative MP Michael Barrett mentioned Carney ought to clarify Brookfield’s use of overseas entities.
“Mark Carney wants to elucidate to Canadians why he used offshore accounts to keep away from paying taxes for the funds he arrange and managed. Canadians deserve a frontrunner who will put Canada first,” mentioned Barrett in a written assertion.
In accordance with press releases issued by Brookfield on the time, BGTF and BGTF II had been “co-headed” by Carney. The opposite supervisor of the funds was Connor Teskey, CEO of Brookfield Renewable Energy.
A spokesperson for the Liberal Celebration refused to reply questions on Carney’s actions at Brookfield or whether or not he had property in tax havens earlier than they had been positioned in a blind belief.
“Mr. Carney labored for Brookfield from August 2020 to January 2025, and has not been concerned with the agency since. Any questions particularly associated to Brookfield must be despatched to the agency,” mentioned the spokesperson, Mohammad Hussein.
In a press release in 2024, Carney mentioned that “the Brookfield International Transition Fund technique is aiming to ship sturdy risk-adjusted monetary returns for buyers and make significant environmental impacts for folks and the planet.”
Situated in the midst of the Atlantic Ocean, Bermuda ranks among the many largest tax havens on this planet. Investments from Canada to the nation have elevated from $10 billion in 2011 to greater than $130 billion in 2023.
The problem of tax havens typically raises passions in federal politics. Former prime minister Paul Martin was notably focused by the Conservatives over his delivery firm’s use of tax havens.
In a report printed in 2023, the Heart for Worldwide Company Tax Accountability and Analysis criticized Brookfield’s tax insurance policies, together with the usage of entities in Bermuda.
The agency responded that it complied with all tax guidelines, explaining that the corporate manages giant infrastructure firms that pay their taxes within the jurisdiction the place they’re positioned.
“We’d additionally observe that jurisdictions around the globe have considerably completely different company tax charges and supply vital tax incentives for funding, for instance in sectors similar to renewable vitality by which Brookfield is a acknowledged world chief,” the agency mentioned.
In a press launch earlier this month, the NDP acknowledged that Brookfield’s use of tax havens has led to the lack of billions in company taxes.
In a press release, NDP MP Niki Ashton referred to as on Carney “to return clear on his position in Brookfield’s exploitative practices to dodge paying their taxes in Canada whereas working Canadians pay theirs.”
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