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Tuesday January 13, 2015 in Books
In Canada: A New Tax Haven, Alain Deneault traces Canadaâ€™s relationship with Commonwealth Caribbean nations back through the last half of the twentieth century, arguing that the involvement of Canadian financiers in establishing and maintaining Caribbean tax havens has predisposed Canada to become a tax haven itself â€“ a metamorphosis well under way.
Canada was linked to Caribbean nations long before they became tax havens. In the 1950s, an ex-governor of Canadaâ€™s central bank attempted to establish a low taxation regime in Jamaica. In the 1960s, the transformation of the Bahamas into a tax haven characterized by impenetrable banking secrecy was shaped by a minister of finance who sat on the Royal Bank of Canadaâ€™s board of directors. A Calgary lawyer and former Conservative Party heavyweight drew up the clauses that transformed the Cayman Islands into an opaque offshore jurisdiction. For years, Canadian politicians have debated annexing tax havens such as the Turks and Caicos Islands, making them part of Canadian territory. Canada has signed a free-trade agreement with Panama and is currently seeking a wider agreement with countries in the Caribbean political community. And, notably, Canada currently shares its seat at the World Bank and the International Monetary Fund with a group of Caribbean tax havens.
These exercises in fostering fiscal and banking leniency have predisposed Canada to become one of the most attractive tax havens to foreign interests. Not only does Canada offer one of the lowest corporate tax rates in the world, but a number of loopholes encourage companies to relocate to Canada as if it were Barbados or Bermuda.
Canada: A New Tax Haven is an attempt to analyze the situation and address its implications for Canadians.
Read the bookâ€™s introduction.
ISBN 13: 9780889228368 | ISBN 10: 0889228361
5.5 W x 8.5 H inches | 224 pages
$29.95 CAN / $29.95 US
Backlist | Non-Fiction | Bisac: BUS011000
QUOTES OF NOTE
â€œCanada, A New Tax Haven explains this countryâ€™s central role in the creation and development of tax havens, sounding a klaxon for global reform of banking supervision and taxation policy. The book also delivers a firm slap to those, including perhaps the current federal government, who would seek to promote Canada as a bastion of feel-good liberalism. â€¦ By offering both a thorough and unflinching perspective on Canadaâ€™s role in the growth of tax havens and a series of practical remedies to the current malaise, Alain Deneault has done this country a service â€¦â€
â€“ Vancouver Sun
â€œThe book is grounded in a spirited defence of taxationâ€™s role in funding the state and its programs, including social programs but also the economic policies and legal system that benefit corporations and wealthy individuals. This is in sharp contrast to most of the specialist tax literature, which revels in complexity, technicality and legal issues, obscuring the crucial political and social issues at stake. â€¦ a valuable contribution to a debate that merits serious Âattention. â€¦ Deneault is rightly outraged â€¦ the book highlights some critical issues. â€¦ Deneault is correct to highlight the need for greater pressure from citizens, which will require continued efforts to lift the shroud of secrecy that surrounds corporate taxation in Canada. â€¦ Canada: A New Tax Haven should help inspire concern and possibly even greater pressure from the Canadian public.â€
â€“ Literary Review of Canada
â€œThis meticulously researched history of Canadian involvement in the development of tax havens across the Western hemisphere reveals how, stealthily, tax lawyers, and business and political elites, have imported the tax haven model into Canadaâ€™s own laws and regulations â€¦ a wake-up call to everyone concerned about democracy and equity in Canada.â€
â€“ John Christensen, Tax Justice Network
â€œAn indispensable resource, providing a rich cultural, social, and historical context that is strongly needed for understanding how tax competition developed into the global phenomenon it is today.â€
â€“ Allison Christians, McGill University H. Heward Stikeman Chair in Tax Law
â€œEssential reading â€¦ Deneault illuminates the blowback effect of Caribbean tax havens becoming, in the hands of big banks and transnational business, a powerful lever for dismantling a century of social progress and democracy itself at home â€“ in this case, in Canada.â€
â€“ Harold Crooks, director, The Price We Pay
â€œRigorously decrypts the mechanisms that have led Canada to adopt â€œlaws of convenienceâ€ that are nothing more than criminogenic legal tools enabling their users to circumvent the obligations and rules that underpin the law states.â€
â€“ Chantal Cutajar, European College of Financial Investigations and Analysis of Financial Crimes (CEIFAC )
â€œDeneault shows that the tax-haven problem is not simply a problem of illegal tax evasion or money laundering by the underground economy or criminal gangs but a much larger issue of how the Canadian state has legalized the use of tax havens by large corporations so that they can evade paying their fair share of taxes.â€
â€“ Dennis Howlett, Canadians for Tax Fairness
About the ContributorsAlain Deneault
Alain Deneault was born in the Outaouais region of Quebec. His interests lie in nineteenth-century German and twentieth-century French philosophy, as well as the work of Georg Simmel. Deneault’s research and writing practices are diverse and often collaborative, focusing on how international financial and legal agreements increasingly foster the interests of â€œstatelessâ€ transnational corporations over those of nation states and the interests of their human communities.Catherine Browne
Born in Indiana, Catherine Browne grew up in Montreal. She has a degree in history from the UniversitÃ© de Provence. A professional translator since the 1980s, for the past fifteen years she has conducted guided tours designed to provide Montrealers with new ways of thinking about their cityâ€™s past and present.
We gratefully acknowledge the financial support of the Canada Council for the Arts; the Government of Canada through the Canada Book Fund (CBF); and the Province of British Columbia through the British Columbia Arts Council for our publishing activities.