Statistics Canada Finds New Evidence Multinational Corporations are Dodging Canadian Taxes
New data from Statistics Canada finds fresh evidence multinational
corporations are using profit-shifting schemes to avoid paying their
fair share of taxes.
corporations are using profit-shifting schemes to avoid paying their
fair share of taxes.
Canada Revenue Agency recently released a Tax Gap report that found Canadian corporations dodged $11 billion in taxes in 2014.
Now Statistics Canada has published additional evidence revealing multinational corporations sent significant profits to low-tax jurisdictions between 2011 and 2016 through various legal maneuvers, significantly eroding public revenues.
One way companies shift profits is by selling stuff to their own
subsidiaries located in other jurisdictions. This transfers a company’s
revenue from a high-tax jurisdiction to a low-tax jurisdiction, and
allows the company to get away with paying fewer taxes overall.