Following a report that said that Mark Carney co-chaired two investment funds that were registered in the tax haven of Bermuda, the Liberal leader defended the decision as benefitting Canadian pension funds.
“The structure of these funds is designed to benefit the pension funds … They pay the taxes on their pension. That’s the design,” Carney told reporters in Windsor, Ont., on March 26, giving the examples of the Ontario Teachers’ Pension Plan and Caisse de dépôt et placement du Québec.
“I understand how the world works and how these structures work, and have the ability to put in place all of the necessary rules to ensure that the appropriate taxes are paid here in Canada,” Carney added.
Carney was answering questions on a March 26 CBC News report that said the Brookfield Global Transition Fund and Brookfield Global Transition Fund II, valued at $15 billion and $10 respectively, were registered in Bermuda while Carney was on the board of directors for both.
Carney said in a February 2024 statement that the Brookfield Global Transition Fund strategy aimed to “deliver strong risk-adjusted financial returns for investors and make meaningful environmental impacts for people and the planet.”
Carney told reporters on March 26 that the taxes are ultimately paid in Canada because the “flow-through of the funds go to Canadian entities who then pay the taxes appropriately,” as opposed to taxes being paid “multiple times before they get there.”
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The Liberal leader said this mechanism ensures that the pension funds of Canadians are protected, and that it is not an example of tax avoidance because “the taxes are paid in Canada.”
Conservative Leader Pierre Poilievre commented on the issue during a campaign stop on March 26 in Montmagny, Que., accusing Carney of avoiding taxes.
“All while Liberals force Canadians to pay higher taxes, Mark Carney dodges the bill himself. He thinks millionaires like him shouldn’t have to pay,” he said.
Poilievre repeated his previous calls for Carney to publicly disclose his assets, saying he “needs to come clean about his offshore dealings“ and show if any of his assets are ”hidden” in tax shelters. He noted Carney’s company was using tax havens at the same time he was advising former Prime Minister Justin Trudeau on the economy.
“I want to put Canada first, but you can’t do that when you all your interests are locked up in foreign interests,” he said.
NDP Leader Jagmeet Singh also accused Carney of registering the two Brookfield funds in Bermuda to “avoid paying taxes.”
“Right now, it’s tax season. Hardworking Canadians are paying their taxes. They can’t choose to register in Bermuda to avoid paying taxes,” said Singh at a campaign stop in Hamilton, Ont.
“A couple months ago, he was avoiding paying taxes in our country, and now he wants to be prime minister. It makes me wonder: Is he going to be working for families … or is he going to continue to favour the companies that he worked for, like Brookfield,” said Singh.
