Showing posts sorted by date for query offshore. Sort by relevance Show all posts
Showing posts sorted by date for query offshore. Sort by relevance Show all posts

Thursday, January 11, 2018

Trudeau Town Halls: Baubles Of Distraction, Not Questions Of Substance



Prime-Minister-For-A-Day Kim Campbell is probably best remembered for saying, “An election is no time to discuss serious issues.” She might just as well have been talking about town halls, particularly the kind our Prime Minister is currently in the midst of.

Justin Trudeau's meet-and-greet will undoubtedly constitute a public-relations success. That success, however, will be thanks to two things: Trudeau's ease in front of large crowds, and the profound colloquialism and ignorance of the people attending these sessions. It is the latter I wish to address today.

In theory, town halls, being somewhat unscripted, are an opportunity to put the convener on the hot seat. Unfortunately, the topics thus far brought up have been tritely predictable and easily defused, no doubt because they are exactly what the PMO has prepared Mr. Trudeau for. Consider, for example, what was asked at his Sackville gathering. While the questions may be important to the posers, they lack, shall I say, a certain concern for national and international issues that the government is, in my view, badly fumbling. Here are two examples:
Abdoul Abdi’s sister Fatouma Alyaan asked ‘Why are you deporting my brother?...My question to you is if it was your son, would you do anything to stop this?’
And this one:
Why do we have medical doctors who come here from different countries who are unable to integrate into the system?
To be sure, he was also asked about his visit to the Aga Khan's private island retreat, for which Trudeau has been rebuked by outgoing ethics watchdog Mary Dawson, but again, this was a predictable and easily-handled question for which I am sure the Prime Minster was well-prepared.

The questions at yesterday's session in Hamilton were similarly trite and predicable:
Prime Minister Justin Trudeau told a woman heckling him about Omar Khadr during a town hall in Hamilton that he, too, is angry about the multimillion-dollar settlement the former Guantanamo Bay inmate received from the government.

“The anger that some people feel, and that a lot of people feel about the payment the government made to Omar Khadr is real and quite frankly — this might surprise you — but I share that anger and frustration,” he said.
Score another one for good preparation.

Yet I can't help but wonder how Mr. Trudeau would respond if truly important questions were asked of him. Questions like the following:

Why does your government insist on protecting the rights of multi-nationals to sue our government over legislation that might interfere with their profits?

Known as investor-state dispute settlement, it is a mainstay of NAFTA and eagerly sought for the TPP. So far, Canada has been sued five times under NAFTA provisions for trying to protect the environment.

Another question well-worth posing would pertain to the government's continuing support for the immoral Saudi arms deal, arms that have been shown, in contravention of the deal, to have been used against Saudi citizens.
In July, after The Globe and Mail's reporting of conflict in Awamiyah, Foreign Affairs Minister Chrystia Freeland issued a statement saying she was "deeply concerned" and announced a probe of the incident.

The Trudeau government has never released the results of this investigation nor has it explained to Canadians what happened.
These are the questions I would ask on this issue:

Why have you refused to release the report, and why is your government now trying to quash the most recent legal challenge to the deal, an attempt that a federal court judge has rejected?

Finally, I would ask about the Trudeau government' attitude toward tax cheats using offshore havens:
A dozen governments around the world say they've recovered a combined $500 million in unpaid taxes so far thanks to the Panama Papers leak of tax-haven financial records in 2016.

But not a penny of that is destined for Canadian government coffers. The Canada Revenue Agency maintains it will be at least another 2½ years before it will have an idea of how much it might recoup.
When other governments are enjoying considerable success in recovering tax money thanks to the Panama and Paradise papers, why is your government and the Canada Revenue Agency so reluctant to aggressively pursue them?

So those are some of the questions that will likely not be asked at the town halls. God forbid that this government should actually have to make an honest accounting of itself to the Canadian people.

Saturday, November 18, 2017

On Tax Fairness



Ed Broadbent recently wrote on the need for real tax reform, calling for an end to the various favours our government bestows on the ultra rich. His thesis was compelling:
Tax avoidance and evasion by the rich ultimately undermines democracy: it starves social programs and public services, increases after tax income and wealth inequality, and further concentrates economic resources in the hands of a few. The overall message to a majority of Canadians is that the rules of the economic game are rigged against them.
He went on to excoriate the Trudeau government for its hypocritical failure to pursue real tax reform:
The Liberals promised change. In their 2015 election platform, they promised to “conduct a review of all tax expenditures to target loopholes that particularly benefit the top 1 per cent.”

But there has been no broad public review in which citizens could participate. And action to date has been limited to stopping abuse of some private corporation rules. Minister Morneau has said he will impose higher taxes on the small number of private corporations that shelter investment assets of more than about $1 million, which is an action that should be supported.
While I did not agree with all of his suggestions, I doubt there would be many who would dispute Broadbent's thesis. In today's Star, readers offer their views on his piece as well as the sickening truths made evident in the recently-released Paradise Papers. Here is but a sampling of their thoughts:
Ed Broadbent writes, “The case for taxing investment income on the same basis as employment income on the grounds that ‘a buck is a buck’ dates back to the Carter Commission of the 1960s when another Liberal government failed to act on it.”

The problem is the ultra-rich are Prime Minister Justin Trudeau’s personal friends and he prefers to run defence for them than to do what is right for the public good.

Former finance minister Allan MacEachen tried to reform the tax system under then-prime minister Pierre Trudeau but, like Carter before him, the government of the day distanced itself from any idea of true reform and let both of these truly honourable men get practically eviscerated by all the real (rich) powers. It’s all about the Golden Rule: “Them that’s got the gold makes the rules.”

Jennifer A. Temple, Welland, Ont.


After decades of tax avoidance by Canada’s wealthy, we now have the exposure in detail of the Panama Papers and the Paradise Papers.

Our current federal government assures Canadians it will restore the principle of tax fairness. Why should Canadians believe this promise? It is the political process and our elected MPs that preserve this economic injustice.

As the Star reported, Parliament and those who bankroll them control the law. It is highly unlikely the wealthy will forfeit their advantage simply because Canadians think it’s unfair.

Talk is cheap and the government won’t move until pushed. I challenge all Canadians to organize a Canada-wide tax boycott. Until tax fairness is achieved, we should refuse to pay any taxes owing, beginning April 2018.

And every MP should be lobbied to support an immediate tax overhaul. Tax fairness can only be achieved by law, not mealy mouthed promises by those concerned only with preserving their own self-interest to the detriment of the rest of us.

Gordon Wilson, Port Rowan, Ont.

Ed Broadbent shines a bright light on the biggest issue of our time: tax reforms that will cut through many complex aspects of our socioeconomic system.

A progressive and clearly defined tax system would address many issues we have been struggling with since the dawn of the 21st century.

We need a tax system that encourages savings and productive investments, while it shifts the tax burden from working people to the wealthy and big corporations. For many years, the middle- and lower-class have been paying taxes while the rich have been taking advantage of it.

A reformed tax system will prevent the creation of generations of wealthy individuals and corporate monopolies, which have taken advantage of societal privileges without paying their fair share. The wealthy have made their money on the backs of the working people.

The Paradise Papers show how the rich, with the help of law firms, have parked 12 per cent of the world’s wealth in offshore accounts, which does nothing to improve the economy. The sheer number and diversity of people and corporations involved in these tax havens is frightening. It is truly like discovering a galaxy of hidden money that public officials have a hand in helping hide away.

Reforming the tax system is possible if there is political will.

Ali Orang, Richmond Hill

Saturday, November 11, 2017

Canadians React To The Paradise Papers



If you aren't yet outraged over recent revelations, check your pulse to make sure you are still amongst the living.

Happily, signs of life are plentiful among Toronto Star readers:
Liberal Party fundraisers held family millions in offshore trust, Nov. 6

Coverage of the Paradise Papers’ celebrity tax evaders has tended to revolve around the potential illegality of their actions. For example: how “blind” the offshore trusts of Stephen Bronfman and Leo Kolber actually are. I imagine most Canadians could care less whether Bronfman’s $60-million, tax-free snowball is being managed from home or from offshore. The real issue is, why is it legal in the first place?

The answer, which these leaks are revealing, is that our federal leaders are so beholden to Canada’s richest men — their chief fundraisers — that substantive crackdowns on these schemes are being prorogued. [Emphasis added]

These tax evasions are a spit in the eye to the Liberals’ fabled “middle class,” let alone to the 12 million Canadians who collectively own less than our richest 100 families.

Jeremy Withers, PhD student, University of Toronto

Thank you again for enlightening us on the machinations of the 1 per cent to avoid paying their fair share of taxes. An outstanding editorial. Surely, I am not the only one thinking of voting for the NDP in the next federal election.

Norma Martinez, Toronto


One of the main reasons for U.S. President Donald Trump’s victory was the snail-pace change to the status quo. People are fed up with the failure of governments to act. Whether the Paradise Papers news is based on legal or illegal actions of wealthy people or organizations is irrelevant. We must find ways to finance the needs of the populace and it is evident that this must come from those who have. Unless the current government acts decisively to outlaw these types of actions, Canadians, too, will either not vote or seek alternative populist methods. Justin Trudeau, be warned. [Emphasis added]

Harry Coupland, Etobicoke

This four-page article about offshore tax havens proves the point of American billionaire hotelier Leona Helmsley, who famously said: “We don’t pay taxes; only the little people pay taxes.”

It seems that democracy is on sale. The rich families finance politicians to fight elections and, as a quid pro quo, politicians protect their wealth through favourable legislation.

The article shows how Leo Kolber, a wealthy man who had accounts in offshore money centres, was appointed senator and then became chairman of the Senate’s powerful banking committee. He held back proposed unfavourable legislation on offshore trusts for 14 years.

These multimillionaires are not paying their share of taxes, forcing government to cut back on social services, health care, education, affordable housing, etc. It is estimated that the Canadian government is losing $6 to $8 billion per year in tax revenue. [Emphasis added]

Is it too difficult to force countries like Panama and British protectorates like Grand Cayman, Isle of Man and the British Virgin Islands to stop hiding money for wealthy Canadians.

Anis Zuberi, Mississauga

It is in the public’s interest to take tax avoidance seriously because we now know this is not a one-shot deal carried out by the odd, cunning billionaire, but rather a widespread scheme common among the wealthy.

We can no longer consider tax dodging and offshore accounts to be trivial, when everyone from the Queen to U.S. President Donald Trump’s cabinet are benefitting from them.

It is especially important for lower- and median-income households to care about this epidemic because it is they who suffer from the increased taxation and lack of public funding caused by the millions lost in tax revenue from offshore holdings. [Emphasis added]

It is the vulnerable and the poor who get the short end after this game is played out and it is time they force this issue into the public sphere and demand it be made a talking point.

Benjamin Rawlings, Ottawa

Thursday, November 9, 2017

The Point Is



In her latest iPolitics article, Kady O'Maley offers the view that the revelations of The Paradise Papers do not constitute a scandal for Justin Trudeau and his government. And while the Scheer-led Opposition is making every predictable effort to connect non-existent dots, few are suggesting that Trudeau had any personal knowledge of the alleged offences committed by chief fundraiser Stephen Bronfman, who has stoutly denied any wrongdoing.

However, to assert Trudeau's blamelessness in all of this is to look only at the immediate situation, one that Justin undoubtedly made worse with his unseemly and ready acceptance of Bronfman's innocence, about which I posted last evening. The larger implications of the ease with which the ultra rich transfer their money to jurisdictions beyond the reach of the tax man constitute the real threat to our democracy and our way of life.

Recently, I wrote this:
The revelations now in the public arena thanks to the collective efforts of hardworking journalists reinforce a perception that many, many people have held for a long time: the tax system is gamed, and talk of tax fairness is simply convenient posturing that ultimately means nothing. This perception/reality is very damaging to public morale; those who believe in paying their taxes are now being shown that they are, in fact, the patsies for their betters.

Nothing could be worse for those who believe in a society where all of us pay to maintain a social safety net, programs to help the disadvantaged, and a public medical system where no one is turned away because their wallet is too thin. Just more fodder for the rabid right wing, and governments have no one but themselves to blame.
It is a sentiment recently echoed by Thomas Walkom:
... tax havens have proved so embarrassing that they put the entire government revenue-raising machine at risk.

The cost to Canada’s federal treasury of offshore tax havens is estimated at between $6 billion and $8 billion a year. While that may seem a lot of money, when compared to the roughly $300 billion that Ottawa pulls in each year, it is relatively small.

Most tax revenue comes from the broad middle-classes — people who are willing to pay as long as they deem the system fair. Revelations, like those in the Paradise Papers, which detail at an individual level how the wealthy and well-connected get special treatment, break that trust. This threatens the entire fiscal basis of the state.
Put succinctly, no one wants to be played for a fool. And it is that fact that makes the cossetting of the utra rich by governments so dangerous.

In its editorial today, The Star offers this:
The latest revelations from the leak of the Paradise Papers raise troubling questions, not only about government’s failure to collect what’s owed, but also about the power of money to subvert our democracy.

They serve as a reminder that those who can afford to hide income from the taxman can also afford to hire the very best lobbyists to help ensure that, whatever the public interest, governments don’t close the loopholes that allow tax avoiders to get away with it.
There is, of course, a solution to all of this, one that I am not holding my breath waiting for:
The Paradise Papers are doing nothing to soothe those who worry about the unseemly intertwining of money and power in politics or about the extent to which the economy is rigged by the few against the many. The government can do something about that. It can, for instance, close unfair and ineffective tax loopholes and collect what’s owed. Or it can sit back, defend the current arrangements and watch the cynicism grow.
It would be nice to believe that The Paradise Papers will lance the massive carbuncle of complicity that exists between government and business, but like its predecessor, The Panama Papers, it will likely last only for a few more news cycles before being replaced by a feat of political legerdemain that suggests we just move along, as there is nothing to see here.

Wednesday, November 8, 2017

Not Good Enough

PM Justin Trudeau says he's satisfied with Liberal fundraiser Stephen Bronfman's explanation of his ties to offshore accounts, but Conservative Leader Andrew Scheer calls those remarks inappropriate.

The Prime Minister is either tone deaf, intellectually challenged, or truly and inextricably linked to the values represented by the world of the Bronfmans that he can so facilely accept the reassurance of scion Stephen that everything is above board.

Surely the Conservative Opposition, which I loathe, has a valid point here:


Nothing to see here, indeed.

Tuesday, November 7, 2017

Behind The Curtain



Ah, Star letter writers rarely disappoint. Truth, rather than political spin, always improves my mood.
Liberal Party fundraisers held family millions in offshore trust, Nov. 6

From Panama to Paradise, we have a tiny glimpse into the realities dictating our lives: aristocrats and power brokers taking aim at record profits while burying the booty in faraway jurisdictions. I remember voting for Prime Minister Justin Trudeau, drinking his Kool-Aid about helping us commoners. Meantime, Trudeau’s friends in high places helped the multi-generational political star with the winning script.

The truth matters not in politics, at least when it comes to speeches. We’re fed lines about a political spectrum, then we are asked to pick a team. The problem is that the rhetoric is irrelevant, it exists only to grease a discourse designed to secure votes. Once power is secured, anything is possible for the people that backed the winners. I’m now of the opinion our prime minister was born into a scheme, his life part of a plan to milk the system.

Mike Johnston, Peterborough, Ont.

The revelations of the Paradise Papers strike deep into the machinations of those corporations and individuals seeking to avoid taxation in Canada. It is estimated that billions per year are lost to the Canadian economy through these tax dodges. The Canadian Revenue Agency (CRA) has to close the loopholes that allow this drain of wealth to happen.

There are so many areas of the Canadian social and economic infrastructure that would benefit from the end of these tax dodges. Now is the time for federal and provincial governments to close the loopholes and bring back Canadian money to Canada.

Don Kossick, Saskatoon, Sask.

First, we had the Panama Papers. Now the Paradise Papers. What we need is the Purgatory Papers: a public list of tax monies recovered and fines levied from persons nefariously using offshore trusts for tax evasion. Otherwise Prime Minister Justin Trudeau’s promise of tax fairness is simply hollow electioneering.

Peter Pinch, Toronto

Monday, November 6, 2017

Paradise Lost

“We don't pay taxes. Only the little people pay taxes.”
-Leona Helmsley

"It is easier for a camel to go through the eye of a needle than for a rich person to enter the kingdom of God.”
- Mark 10:25



This morning's Star gives comprehensive and very comprehensible coverage of the latest peak behind the tax curtain controlled by the ultra wealthy, and it is not a pretty picture, unless you think that greed and tax evasion make for a pleasing tableau.

Distilled to its essence, if I understand the situation correctly, the Bronfman family, through trusted consigliere Leon Kolber, established an offshore trust in the Cayman Islands in Kolber's name. All monies sent were deemed to be 'loans' by the Bronfmans, thereby allowing them to invest in Israeli interests tax free. Kolber's son Charles, now a citizen of Israel, handled things from that end and was rewarded lavishly for those efforts through trust disbursements.

Some will insist, as do the Bronfman lawyers, that there was nothing illegal about this but merely an astute use of extant tax loopholes. However, that explanation doesn't wash because the decisions about the trust (i.e., investment decisions) were made in Canada, not the Caymans, and thus should have been taxed as a Canadian trust.

Why should any of this matter to us? Well, the obvious reason is that our federal coffers were denied much-needed tax revenue, but unfortunately the implications of this scheme, no doubt practised by many of Canada's elite, go well beyond lost tax revenue. What the Paradise Papers essentially show is that the days of the Family Compact are far from over, and that the real levers of power are still being exercised behind closed doors.

To get a sense of that power, one has to go back to the nineties, when Edgar Bronfman was allowed to take $2 billion out of Canada tax free:
...a controversial tax ruling by Revenue Canada in 1991 ... allowed the Bronfmans to move more than $2 billion worth of Seagram Co. stock, held in two family trusts, to the United States without paying capital gains tax. The decision allowed the family to avoid as much as $700 million in taxes.
If you go to the 39-minute mark on last night's National, the disturbing mechanics behind this scandalous ruling are revealed, as Revenue Canada's efforts to block the deal gave way to pressure from the Bronfmans, who threatened to "go over their heads." The stench of political interference and corruption by the Mulroney government of the day is hard to ignore:



The revelations now in the public arena thanks to the collective efforts of hardworking journalists reinforce a perception that many, many people have held for a long time: the tax system is gamed, and talk of tax fairness is simply convenient posturing that ultimately means nothing. This perception/reality is very damaging to public morale; those who believe in paying their taxes are now being shown that they are, in fact, the patsies for their betters.

Nothing could be worse for those who believe in a society where all of us pay to maintain a social safety net, programs to help the disadvantaged, and a public medical system where no one is turned away because their wallet is too thin. Just more fodder for the rabid right wing, and governments have no one but themselves to blame.

I began this post with two quotes. The one by Leona Helmsley encapsulates something far too common amongst the monied: an abject contempt for the larger society within which they prosper, and a complete absence of any sense of obligation toward that society. They really believe that they are our betters.

The second quote, from The Bible, is reflective of the distance that great wealth can create from "the kingdom of God," that kingdom, in my interpretation, being a state of spiritual attunement with our fellow human beings. If we are not aligned with other people and have a sense of shared humanity, we cannot hope to have access to transcendent reality, whatever it ultimately is.

The ultra rich may have great wealth, but in other ways they are deeply and fatally impoverished.

Sunday, November 5, 2017

The Paradise Papers



The prospect of real tax reform in Canada just got a lot dimmer. Today's release of the Paradise Papers suggests why.

CBC News is reporting this about Justin Trudeau's chief fundraiser, Stephen Bronfman:
In the early summer of 2015, Justin Trudeau was the star attraction at a private fundraiser in Montreal hosted by philanthropist and financier Stephen Bronfman.

Bronfman, an heir to the Seagram family fortune and a close Trudeau family friend, was revenue chair of the Liberal Party. That day, according to news reports, the two men raised $250,000 in under two hours.

Within weeks, the Liberals would launch their federal election campaign, sweeping to power on a "Real Change" platform that focused on the middle class and a promise to tax the rich.

"Our government has long known — indeed, we got elected — on a promise to make sure that people were paying their fair share of taxes," Trudeau said shortly after his election victory. "Tax avoidance, tax evasion is something we take very seriously."

But an investigation by the CBC, Radio-Canada and the Toronto Star has found that Bronfman and his Montreal-based investment company, Claridge Inc., were key players linked to a $60-million US offshore trust in the Cayman Islands that may have cost Canadians millions in unpaid taxes.

It's a 24-year paper trail of confidential memos and private records involving two prominent families with Liberal Party ties that experts say appear to show exploitation of legal tax loopholes, disguised payments and possible "sham" transactions.
You can read much more at the above links.

Thursday, September 7, 2017

He Takes A Nice Selfie, But Secrecy Is His Real Forté



Those of us who follow politics fairly closely know that there is frequently less than meets the eye in the Trudeau government. Certainly, the Prime Minister talks a reasonably good game, and his selfies are world-renowned, but scratch the surface and you will find increasing evidence that the emperor is, at the very least, scantily-clad.

There is, of course, Trudeau's widely-known betrayal of his election-campaign commitment to electoral reform. We were told that there just was no consensus, a claim widely ridiculed since the government never asked Canadians what new voting system they preferred.

But even more worrying than that lie is the disparity that exists between his rhetoric about climate change and the reality of what he is pursuing in relative secrecy, one that seems to be very close to what we often euphemistically call 'industry self-regulation'. Gloria Galloway writes:
Environmental groups say they are surprised to learn that the federal Liberal government has been rewriting and consolidating the regulations governing offshore oil and gas drilling for more than a year without informing them or obtaining much input beyond that of the petroleum industry.

The current draft of the regulations requires the oil and gas industry to implement the safety measures that companies determine to be "reasonably practicable," but the environmentalists say it imposes no minimum standards.

[This suggests that] the proposed changes would allow the industry to decide what safety measures can be reasonably and practicably implemented, the environmentalists say. They suggest oil and gas companies would be able to argue that some are too expensive or too difficult.
Known as the Frontier and Offshore Regulatory Renewal Initiative (FORRI), consultations began last year and are now in their final stages. And the excluded groups are not only environmental organizations, but also indigenous groups, quite remarkable given the Trudeau government's blather about reconciliation.
... while the FORRI website includes many responses to the draft regulations from the petroleum industry, the only Indigenous feedback is from the Inuvialuit Regional Corporation (IRC), an Inuit company that manages a land claim in the western Arctic. The IRC expressed significant concerns about the initiative and the consultations.

Other Inuit groups, including the Inuit Tapiriit Kanatami and the Qikiqtani Inuit Association, which represents Inuit on Baffin Island, say they got no opportunity to give input.
Make of all of this what you will, but I don't think one has to be especially cynical to be very, very concerned about giving the oil and gas industry more freedom, worried as we all should be about our collective future, especially given the global climate disruptions we are currently in the midst of.

Sunday, April 30, 2017

Coastal Concerns



As I wrote earlier this year, I have pledged not to visit the United States until, at the very least, the Donald Trump presidency is history. That does not mean, however, that my attraction to the west coast, in particular, California, has diminished. Were these better times, I likely would have paid a second visit to a state that appeals to me on many levels.

It is therefore heartening to see that there is no lessening of resistance in the Golden State to Trump and his mad policies of unleashing more fossil fuels to generate economic growth. Long known for its progressive environmental policies, California has no intention of acquiescing in the Orange Ogre's mad plans:
President Donald Trump painted a golden future of “great wealth” and “great jobs” powered by oil pumped from the ocean floor as he signed an executive order on Friday to consider new offshore drilling around the country.

But his efforts could splash harmlessly against the hardened barricades that California has been fortifying for decades with regulation and legislation to prevent additional drilling along its treasured coast.
Traumatized by past oil spills, Californians are in no mood for Trump's disdain for the environment:
“We will fight to the end,” said Susan Jordan, executive director of the California Coastal Protection Network, an environmental group. “They will not get any new oil on these shores."

“Californians will not stand for this,” said Jennifer Savage, a spokeswoman for the Surfrider Foundation, a nonprofit conservation group. “We love our coast. It's our playground, the driving force of our economy, the place where we find solace, joy and sustenance.”

California Atty. Gen. Xavier Becerra, along with Gov. Jerry Brown and top lawmakers, promised to fight any oil drilling.

“Instead of taking us backward, the federal government should work with us to advance the clean energy economy that’s creating jobs, providing energy and preserving California’s natural beauty,” he said.

State Sen. Hannah-Beth Jackson (D-Santa Barbara) quickly announced new legislation Friday that would bar state commissions from allowing any new oil infrastructure along the coast, from piers to pipelines.

The legislation, scheduled to be introduced next week, would buttress opposition to offshore drilling from the California Coastal Commission and the State Lands Commission, who have jurisdiction over the coastline and the waters stretching three miles into the ocean.

"California’s door is closed to President Trump’s Pacific oil and gas drilling,” said Lt. Gov. Gavin Newsom, who is chairman of the state’s lands commission.
While others, including our prime minister, suggest that exploitation of fossil fuels and environmental protection are not mutually exclusive, Californians, it would seem, are in no mood for either hollow rhetoric or risk-taking.

Tuesday, February 14, 2017

An Ideological And Horticultural Taint



Although I am not a user of medical cannabis, the current scandal (and it can only be termed a scandal) regarding dangerous and forbidden pesticide use by companies with the Health Canada seal of approval is instructive.

First, a recap of the situation is in order:
After a string of recent recalls by Mettrum Ltd., OrganiGram Inc. and Aurora Cannabis Inc. because of the presence of myclobutanil – a banned pesticide that produces hydrogen cyanide when heated – a number of patients told The Globe and Mail they don’t see how Health Canada can assure them the product can be trusted. Revelations that the government isn’t testing regularly to prove all companies aren’t using harmful chemicals have left consumers concerned for their health.
The real villain of the piece is our current 'new and improved' government, which seems quite content to follow the same practices set out by the former, much-despised neoliberal Harper government.
In a background briefing with The Globe and Mail, a senior Health Canada official acknowledged that even though the government prohibits the use of potentially harmful chemicals such as myclobutanil, – which is known to emit hydrogen cyanide when heated –the department has not been testing cannabis growers to ensure the 38 federally licensed companies were, in fact, not using it.
Instead, the regulator has been leaving it up to the growers to police themselves on the use of potentially harmful chemicals.[emhpasis added]
The rather naive justification for this betrayal of the people using pot for therapeutic reasons is unconvincing:
... we have not required licensed producers [LPs] to test for any unauthorized pesticides, nor have we been testing all LPs, and it is because we expect their companies to be pro-actively watching and taking the appropriate measures to ensure non-authorized products aren’t used.
Perhaps the most damning aspect of all of this is that when a recall of tainted product took place in December, Health Canada refused to reveal the reason: the discovery of myclobutanil.

We will soon be a year-and-a-half into our 'new' government's tenure, more than sufficient time to set new directions for all government bodies, but just as Revenue Canada has shown no particular appetite for chasing down offshore tax evaders, despite the revelations of The Panama Papers, Health Canada and undoubtedly many federal regulators are still hewing to the much-vaunted neoliberal tenet of belief: industry self-regulation.

A damning indictment, to be sure, both of the medical marijuana industry and the Trudeau government, which clearly has not yet met a free-market policy it doesn't like.

Monday, January 23, 2017

The Haves Certainly Have It



This from today's Letters To The Editor, to which I have nothing to add:
Re: Two richest men as wealthy as poorest 30 per cent, Jan. 16

It is telling that this news report was not a front-page headline in the Star.

As if the world needed any more data on the abject failure of capitalism and the neoliberal free market experiment, Oxfam has released yet another report once again documenting the egregious and unconscionable wealth of a minuscule number of individuals in Canada and around the world.

Report after report has documented the skyrocketing expansion of inequality around the globe and the inexorable march of wealth to the top of the social ladder. If capitalism were a new drug being developed to cure cancer and it failed in all but a few cases out of billions it would be abandoned immediately but we continue to prescribe the economic thalidomide of capitalism to the world’s population without remorse.

However, despite this overwhelming and incontrovertible evidence, the world media, economists and politicians seem blasé regarding its dismal and destabilizing failures and the deep and comprehensive reforms that are needed to ensure that global wealth is shared equitably. There are no front-page hue-and-cry headlines calling this an economic crisis or extended coverage of this issue on the news channels. This gross status quo inequality seems to be accepted and normalized as an inherent part of capitalism that cannot be changed.

In fact, with the election of Donald Trump in the United States, the American public has decided to firmly put on its rose-coloured glasses and double-down on the neoliberal nightmare of “cancer capitalism.”

Despite this political St. Vitas Dance, there is a desperate need for a government regulated, moderated and managed economic system that is actively structured to serve the needs of all in society as the historian and economist Karl Polanyi asserted. Such a system places clear limits on wealth accumulation and claws back excess wealth and profits through progressive taxation.

If we were smart enough to invent capitalism, we are smart enough to invent its replacement.

It is time to radically change our global economic system to serve the needs of humanity, not a few humans.

Robert Bahlieda, Newmarket

Do you find it amusing that we the public anxiously follow the media to be aware of the daily interaction between nations, cultures, religions, terrorists, politics and, oh yes, economies? Such a multitude of players in mankind’s unfolding history and future.

But perhaps there’s really only 16 – based upon the knowledge (and fact) that eight men own half the world’s wealth. Perhaps there are 16 players served by millions who accommodate them for reward while billions of others live in war and death and poverty and the rest of us are relegated to being blocks of pieces on an endless series of game boards that lead to millions of winners and billions of losers — just sayin’, perhaps.

But history says nations fade as empires rise. And our supposed representatives in governments are silenced by their parties who serve the players and their accommodators. Global democracy with globalization is sadly our “paradise lost” because globalization without global democracy is the globalization of poverty.

Ask yourself this. When it comes to big banks, big business, big oil, big money (non-pursuit of offshore accounts) and big talk, is Justin Trudeau really that much different than Stephen Harper?

Randy Gostlin, Oshawa

Sunday, October 23, 2016

Free Trade Is Never Free

While it is beginning to look like International Trade Minister Chrystia Freeland's departure from CETA negotiations was more of a ploy than the end of talks, the hiatus at least gives Canadians the opportunity to once more reflect on its dangers, the same dangers that afflict other so-called free trade deals.

The fact is, free trade is never free. The surrender of sovereignty rights, about which I have written previously, is probably the most insidious aspect of such deals, given that corporations are granted the right to sue if national or subnational governments pass legislation that affects a corporation's right to make money. That includes legislation to protect the environment or mitigate climate change.

An analysis of the Trans Pacific Partnership yields this chilling truth:
"The Investor State Dispute Settlement (ISDS) mechanism included in the TPP investment chapter grants foreign investors access to a secret tribunal if they believe actions taken by a government will affect their future profits. This provision is a ticking time-bomb for climate policy, because many government policies needed to address global warming are subject to suits brought before international investment tribunals. ...Other TPP chapters like the one covering trade in goods can be the basis for state-to-state suits challenging climate policies."
Here in Ontario, citizens were recently reminded of the consequences of corporate displeasure via the NAFTA investor dispute settlement provisions. Opting for some sober second thoughts, the province decided to put a moratorium on offshore wind turbine development, a pause that did not sit well with Windstream Energy LLC, the American company that had signed a $5.2 billion deal with Ontario. A fine of $25 million has been imposed after Windstream invoked its investor rights that were granted under NAFTA, but the fine is a mere precursor to future action.
At the end of September, a panel convened by the Netherlands-based Permanent Court of Arbitration awarded $25.2-million in damages and almost $3-million in legal costs to Windstream, saying the province broke rules under the North American free-trade agreement when it put a moratorium on offshore wind developments in February, 2011, effectively scuttling the Windstream project.
The deal is still considered to be in force, and Windstream has every intention of making sure it comes to fruition:
“We have a contract here, and contracts don’t go away,” [Windstream director David] Mars said, even though the moratorium on offshore wind is still in effect.
In other words, taxpayers will have to brace themselves for further, much deeper compensation to the company in the future, unless Ontario gives in to the extortion NAFTA has made possible.

And despite free-trade cheerleader Freeland's ceaseless chatter about making the investor dispute settlement process more transparent, the unalterable fact is that the right of corporations to sue governments remains solidly intact.

I'll leave the final word to Noam Chomsky who, in this brief video, reminds us of some inconvenient truths we would do well to never, ever forget:

Saturday, September 3, 2016

On Corporate Plundering


H/t makaycartoons.net

Having written previously on the breath-taking legalized theft of our groundwater made possible by an Ontario Liberal government that has yet to meet a corporate entity it doesn't love, I avidly follow public reaction to this outrage. Today's Star offers an excellent series of letters on the topic, two of which I reproduce below:
Re: Let's stop being suckered by water-bottling giants, Aug. 27

The long-standing practice of allowing our fresh water supplies to be drawn by huge private commercial multinational companies like Nestlé and bottled for profit is egregious. In the ultimate perverse and twisted irony of capitalism a free, publicly owned resource is privatized and then sold back to those who previously owned it.

For decades the Ontario government has allowed Nestlé and other private companies to draw Ontario’s fresh water from our aquifers at literally no charge so that it could be bottled and sold back to us at a massive profit in the form of bottled water, beer and soda pop. After an outcry at this practice by environmentalists many years ago, they then placed an insultingly low token fee on the water of $3.71 per 1 million litres and quietly allowed Nestle to continue taking an average of 3 million litres a day of our publicly owned finite resource for bottled water.

Recently, without fanfare the Ontario government renewed the agreement. This should have been a large front-page headline in the Star but was not even noted.

As Ontarians we should all be outraged that a large multinational private enterprise is given our water without charge and under secrecy by our own government in what amounts to nothing more than legalized corporate theft with the willing collusion of the province.

Ontarians gain absolutely nothing from these arrangements while losing our finite supply of fresh water; Nestlé gets everything.

What possible motivations or explanation could the government have for agreeing to such terms while they are struggling with a large cumulative debt and an ongoing deficit and cutting government funding for a variety of critical services? What obligation does the government feel to a faceless mega-corporation that is happily stealing our water for its own enrichment with the blessing of the government? This is corruption at the highest level. Would Nestle agree to the deal if the terms were reversed?

The Ontario government is willingly forgoing billions in water revenues that are desperately needed. Why would the government at the very least not bottle our own water and sell it on the open market to recoup full value for Ontarians for this precious resource while eliminating the middle-man? Water bottling is not a sophisticated, expensive or complex process.

This is yet another example of the corruption of free enterprise and the willing collusion of our own public officials in its practice much like the recent revelations about offshore tax havens. The Minister of the Environment should resign. These agreements should all be cancelled.

We are regularly treated to egregious examples of governments selling off public assets to the private sector in perpetuity at fire-sale prices. It happened with Highway 407, it is happening with Hydro and it has been going on for decades with our water. The private sector is licking its chops over the LCBO. Where will it end and when will we have and demand a government that is truly a steward of the shared resources we all own.

The sale of any public asset should be placed under the lens of critical public scrutiny. These public resources are not theirs to sell to the lowest bidder! There should be a public inquiry into the privatization of public assets. If this keeps up soon we will have water, water everywhere but not a drop that we own.

Robert Bahlieda, Newmarket

Martin Regg Cohn’s evaluation of Nestlé’s right to bottle large quantities of Ontario water at a cheap price, then to sell it back to us, reveals an insidious corporate profit-making ploy that has gone on for several years. It happens in the U.S., too.

I suppose that Ontario Liberal Premier Kathleen Wynne believes that $3.75 per million liters of water is better than nothing, but she fails to note the effect on rural aquifers. Farmers depend totally on water they draw from their expensive wells, and resent bottling companies drawing down their valuable resource so city folk can sip from costly plastic bottles.

I hope that this report will persuade some Torontonians to revert to tap water, thereby reducing Nestlé’s profits and water draw. Meanwhile I suggest Mr. Cohn investigate the many government-instigated restrictions that cause farmers to wonder why we should keep working as farmers.

Charles Hooker, East Garafraxa

Wednesday, June 22, 2016

The Perspective Of Age


I suspect that much of the wisdom attributed to old age is the perspective that the years bestow. Having lived a certain length of time, it seems inevitable that people will more easily see through rhetoric and facades, much of them perpetrated by democratic governments who claim to represent the interests of the people. One example would surely be Tax Information Exchange Agreements (TIEAs) involving what many would say are a massive fraud perpetrated on Canadian taxpayers.
Under the guise of combating tax evasion, the federal government opened up dozens of tax loopholes that have allowed Canadian corporations to avoid paying tax on $55 billion in international profits over the last five years.

The money is funnelled into offshore tax havens and can be brought back to Canada tax free by multinationals based in Toronto, Vancouver and Calgary.

These offshore manoeuvres translate into billions of dollars in lost tax revenue for Canada, not because companies are cheating, but because they are encouraged to avoid taxes by government policies.
Not surprisingly, the abuses the treaties allow were engineered by the Harper government at the behest of corporations.
In 2010, Canada joined an initiative launched by the Organization of Economic Co-operation and Development to make tax havens more transparent and started signing Tax Information Exchange Agreements (TIEAs) with notorious tax havens like the Cayman Islands, Jersey, the Isle of Man and the British Virgin Islands.

At the same time, the tax code was altered to allow any Canadian multinational corporation doing business in a TIEA partner country to bring profits home tax free.
Says Arthur Cockfield, a professor of tax law at Queen’s University,
“The corporate lobby is alive and well...“Why did (the government) do it? They were persuaded by industry that it was necessary to be globally competitive.”
Yielding to the corporate lobby has proven quite costly.
A joint investigation by the Star and the CBC has found that, since the first TIEAs were signed in 2011, the deals have allowed corporations working in low- or no-tax zones like Bermuda, the Bahamas and Panama to avoid paying taxes on some $55 billion in profits. If earned in Ontario, that money would have yielded more than $14 billion in tax revenue. That’s the equivalent of nearly half of this year’s projected federal deficit.
It is, of course, quite easy to demonize the Harper government that engineered these loopholes, starving much-needed programs and placing an even heavier burden on us, Leona Helmsley's 'little people.' Moreover, the true test of whether our new government is any better will be whether or not it revokes these obscene deals.

As one who has come to the conclusion that government is not really there to represent our interests, its rhetoric notwithstanding, I'm betting that Mr. Trudeau will opt for the status quo.

Tuesday, May 10, 2016

Enemies Of The People

I hardly think that is too harsh a description of both those who park their money offshore to avoid taxes and those who facilitate such evasions. Indeed, an open letter signed by some of the world's leading economists makes the cost of such selfish and criminal behaviour eminently clear:

As the Panama Papers and other recent exposés have revealed, the secrecy provided by tax havens fuels corruption and undermines countries’ ability to collect their fair share of taxes. While all countries are hit by tax dodging, poor countries are proportionately the biggest losers, missing out on at least $170bn of taxes annually as a result.

... we are agreed that territories allowing assets to be hidden in shell companies or which encourage profits to be booked by companies that do no business there, are distorting the working of the global economy. By hiding illicit activities and allowing rich individuals and multinational corporations to operate by different rules, they also threaten the rule of law that is a vital ingredient for economic success.

To lift the veil of secrecy surrounding tax havens we need new global agreements on issues such as public country by country reporting, including for tax havens. Governments must also put their own houses in order by ensuring that all the territories, for which they are responsible, make publicly available information about the real “beneficial” owners of company and trusts.


The impact of such behaviour is felt everywhere, but never more than in developing countries:
... while estimates put the cost to Canadian tax coffers at between $6- and $7.8-billion per year, the effects on developing countries is far greater, said Haroon Akram-Lodhi an economist and professor of international development at Trent University.

“The amount of capital flight from sub-Saharan Africa is absolutely huge and it’s all going into these tax havens,” said Akram-Lodhi, one of the signatories of the letter. “This is reducing the ability to fight poverty on a global scale.”

Will governments merely go through the motions of doing something, and then go back to the old ways once the fierce glare of the public subsides? I don't know, but I am somewhat dubious of any substantive changes, since the rich and powerful are, well, rich and powerful.

Now that a searchable database is online, this interview with The Star's Marco Chown Oved sheds some light on what can be found there:



One hopes against hope that real change is in the offing.

Tuesday, April 12, 2016

Panama Papers Aftermath



While the revelations thus far about offshore holdings for the purpose of tax avoidance or evasion have provided us with a glimpse into the lives of those well beyond our pay grade, whether or not they have any lasting effect depends largely, not on the reactions of you and me, but rather those of the world's governments. And while public outrage may be high right now, whether those governments will simply ride out that outrage with sanctimonious promises to "go after the tax cheats" and do little, or enact substantive measures to curb this most foul and unpatriotic practice, remains to be seen.

Canada seems to be promising action, with National Revenue Minister Diane Lebouthillier promising substantial resources to go after those who put their own extreme personal wealth above the common good:
With an extra $444 million promised in the March budget, the CRA plans to hire additional staff to target what it dubs “high-risk” taxpayers and corporations. In return, the agency expects to collect an additional $2.6 billion in tax revenues over the next five years.

It also plans to boost its information technology capabilities to better sort the overseas financial transactions to detect tax fraud. The agency already tracks all financial transactions worth more than $10,000 — about a million a month.

Now it plans to focus its attention on all transactions involving individual jurisdictions known to be tax shelters — starting with the Isle of Man, off the west coast of England. Three other jurisdictions will also be targeted this year but agency officials refused to say which ones.
While all of this appears to be a good start, a couple of things puzzle me. It is estimated that between $6 and 7.8 billion is lost to our treasury annually through undeclared offshore holding. Yet, our government is promising only that the initiatives announced will collect an additional $2.6 billion in tax revenues over the next five years. Huh?

Secondly, our government has announced which offshore haven it will be examining first, the Isle of Man:
The first is the Isle of Man, which past transactions involving some KPMG clients have already been flagged by the agency. Quebec Liberal MP François-Philippe Champagne said $860 million in funds were transferred there in the last year along. Sixty audits already underway in relation to investments held in the Isle of Man. The CRA intends to contact another 800 taxpayers and corporations to obtain more information about their holdings.
Now, I know nothing about the arcane world of tax evasion and avoidance, but is it possible that by signaling its intent, the government is also giving the fiscal malefactors an opportunity to move their lucre to other havens not currently under the CRA's scrutiny?

I think these are legitimate questions to ask, given the fact that the CRA has previously treated tax scofflaws with great consideration. A Star editorial provides reasons we should be a bit cynical:
...while agencies such as the CRA and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) are happy to name the small fish they catch breaking the laws and regulations, that hasn’t always been the case with bigger fish.

Just last week FINTRAC, which tracks money laundering and terrorist financing among other things, announced it had levied a stiff $1.1-million penalty on a Canadian bank for failing to report a suspicious transaction and various money transfers. But it declined to name the institution involved. Meanwhile it is busy naming players who have been slapped with fines of $15,000 or less.

And CRA has drawn criticism for quietly offering an amnesty deal to unnamed multi-millionaire clients of the KPMG accounting firm who were allegedly involved in tax avoidance on the Isle of Man. The Canadian Broadcasting Corp. reported that the group was required by CRA only to pay back the taxes they owed, plus interest. Yet the CRA routinely prosecutes and names people who fail to file tax returns or otherwise run afoul of the law.
For more details about how the CRA has one approach for most of us and another for the monied class, click here; you may also want to watch the following video:



To close, I'll leave you with this excerpt from the Star editorial that likely sums up how so many of us feel:
If the government hopes to “give Canadians greater confidence that the tax system is fair to everyone,” its agencies should be prepared to publicly name offenders. Cutting deals to spare Ottawa the trouble of prosecuting, or to preserve the “good name” of financial institutions and their wealthy clients, isn’t going to reassure anyone other than the scofflaws themselves.

Ottawa shouldn’t be in the business of shielding those who have gone to extraordinary lengths to insulate themselves and their assets from public scrutiny.

Monday, April 4, 2016

The Panama Papers



Marie over at A Puff of Absurdity offers a very good overview of something that is certain to have long-lasting reverberations, The Panama Papers. Be sure to check out her post.

The Toronto Star reports the following:
In the largest media collaboration ever undertaken, more than 370 journalists working in 25 languages dug into 11.5 million documents that revealed Mossack Fonseca’s [a Panamanian law firm renowned internationally for establishing shell companies] inner workings and traced the secret dealings of the firm’s customers. The more than 100 news organizations involved shared information and hunted down leads generated by the leaked files using corporate filings, property records, financial disclosures, court documents and interviews with money laundering experts and law-enforcement officials.
Significantly, the only Canadian media organizations to participate in the consortium undertaking this massive investigation are The Toronto Star and the CBC/Radio Canada. At least someone in our country is concerned about the public good.

Why is this such an important investigation? First and foremost, it identifies a panoply of individuals and companies whose main motivation is tax avoidance. Their allegiance to themselves and, in the case of corporations, their shareholders, is paramount.

It should be stressed here that the vast majority of those involved in these schemes are doing nothing illegal, merely taking advantage of loose tax laws that permit such avoidance. But to me, this points to an incontrovertible truth about some wealthy individuals and many corporations: they feel no obligation to pay the country of their residence their fair share of taxes. In other words, they are putting their own financial security and profits above the land that nourishes and hosts them, the land that provides them with an educated workforce and the infrastructure that make their wealth possible.

And that should serve as a cautionary tale of great magnitude as we contemplate, for example, signing both the CETA and TPP free trade deals. The Investor-State Dispute Settlement provisions of such trade agreements give priority to corporations over state sovereignty so that should a country's laws impinge upon a company's profits, that company can sue the government. Given that The Panama Papers will confirm that loyalty and patriotism are concepts foreign, indeed, inimical, to those who pursue profit at almost any cost, there is surely reason for real caution.

The investigation is a wake-up call for governments to amend tax laws that in fact aid and abet theft from national treasuries. Here at home,
... Canadians have declared $199 billion in offshore tax haven investments around the world, according to Statistics Canada.But experts say that figure is a small fraction of the Canadian offshore wealth that goes undeclared.

The precise annual cost to Canadian tax coffers is unknowable. But credible estimates peg Canada’s tax losses to offshore havens at between $6 billion and $7.8 billion each year.
One need not have an especially rich imagination to consider how an increase in federal coffers of that size could be used for the benefit of all.

Every so often, thanks to circumstance and the indefatigable efforts of investigative journalists, the curtain is pulled aside and we are able to get a peek at an underlying and ugly reality. Ours is a world in which selfishness and evil often prevail, thanks to the complicity of far too many and the shield of darkness behind which much of this takes place.

Perhaps The Panama Papers can help to bring some much-needed light and eventual reform to this shameful and unjust state of affairs.

Monday, March 14, 2016

Sometimes Progressives Can Be As Dogmatic As Their Right-Wing Counterparts

I recently wrote the following:
One of the things that I think distinguishes progressives from rabid reactionaries is that the latter tend to have reflexive positions on key issues, while the former can appreciate nuance.
I do believe in the general validity of that thesis, but it is also true that some who embrace the progressive title can be as inflexible, dogmatic and reactive as their far-right counterparts. A very interesting story in The New York Times about the repurposing of old oil rigs amply demonstrates this.

Dr. Milton Love, a professor of marine biology at the University of California Santa Barbara, has researched marine life at offshore drilling sites, and says that
the location of these rigs — in marine-protected areas in a cold current that swoops down from British Columbia — have made them perfect habitats for fish and other sea life.

“They are more productive than coral reefs, more productive than estuaries,” ... “It just turns out by chance that platforms have a lot of animals that are growing really quickly.”

Most stunning of all is that Dr. Love's research has determined that most of the life was actually created at the rig rather than having come from other parts of the ocean and settled around the massive concrete pylons.

While there is growing momentum to leave large sections of the decommissioned rigs intact (80 feet below the surface so as not to impede shipping lanes) after wells have been capped and cemented, the concept has also provoked strong opposition from some surprising quarters:
“It’s seen as something which benefits the oil industry, and opposing the oil industry is the role taken by many environmental groups,” said George Steinbach, the executive director of the California Artificial Reef Enhancement program, a nonprofit advocacy organization funded by the oil industry.
“People here have been waiting for these oil platforms to go away,” said Linda Krop, an environmental lawyer with the Environmental Defense Center, an advocacy group based in Santa Barbara, where several offshore rigs can be easily seen from shore.

Ms. Krop disagreed that the science is settled on the role of the rigs in fostering marine life. Regardless, she said, leaving the rigs up would be tantamount to rewarding polluters with the windfall of not having to pay to remove them.

“When they built those platforms, that was a cost that they took into effect,” she said.
The savings to the oil industry cited by Ms. Krop is something of a red herring. While it is true that only partial decommissioning would save big oil an estimated $1 billion,
under the law, oil companies would be required to put at least half of the money they save into state coffers to fund conservation programs.
Many would view that as a happy compromise.

Personally, I find the kind of dogmatism expressed by Linda Krop and the Environmental Defense Center a little hard to understand, given the obvious benefits research has shown would accrue by keeping the rigs intact. While one may have genuine reasons for opposing views, adamantine ideology cannot qualify as one of them.

In any event, treat yourself to some stunning images of the marine life to be found around these rigs which have, for all intents and purposes, become artificial reefs:

Wednesday, March 9, 2016

Remembrances Of Things Past (And Present)



I suspect it is only the very young and the profoundly naive who believe that justice is blind, that all are treated equaly under the law. While a pleasing fiction that governments like to perpetuate, nothing could be further from the truth.

Consider the latest revelations about the Canadian Revenue Agency's shoddy hypocrisy, begun under the Harper regime but showing no signs of abatement under the Trudeau government.
The Canada Revenue Agency offered amnesty to multi-millionaire clients caught using what's been called an offshore tax "sham" on the Isle of Man — a reprieve that was supposed to remain secret and out of the public eye until it was uncovered by a CBC News/Radio-Canada investigation.

Canada Revenue officials demanded, and offered, secrecy in a no-penalty, no-prosecution deal to high net worth clients of accounting giant KPMG involved in a dodgy offshore tax scheme.

The amnesty allows for "high net worth" clients of the accounting giant KPMG to be free from any future civil or criminal prosecution — as well as any penalties or fines — for their involvement in the controversial scheme.

The clients simply had to agree to pay their back taxes and modest interest on these offshore investments, which they had failed to report on their income tax returns.
While this might come as no surprise to many, what compounds this egregious injustice is the fact that the CRA is far less forgiving of ordinary people, many of whom, through no fault of their own, found themselves the victims of very punitive CRA action:
Toronto tax lawyer Duane Milot, who represents middle-income Canadians in disputes with the CRA, says his clients are routinely dragged through the courts for years by Canada Revenue.

"It's outrageous," he told CBC News after reading the leaked document. "The CRA appears to be saying to Canadians, 'If you're rich and wealthy, you get a second chance, but if you're not, you're stuck.'"
Just how much contempt the CRA feels for non-wealthy people is evident in the first four minutes of the following report:



Will relief for such iniquitous inequity be forthcoming from our 'new' government? In his finely-honed prosecutorial style, Thomas Mulcair asked some hard questions of the Prime Minister in the House. I was less than reassured by the answers he was given:


I couldn't help but note that in the response he gave, Mr. Trudeau sounded alarmingly like his predecessor, deflecting the questions by criticizing the questioner and then launching into some pious platitudes.

It seems that in some ways, our new government is getting old very quickly. Consequently, the CRA's foul practices continue apace.