During a campaign stop in Verdun, Montreal, NDP Leader Jagmeet Singh unveiled a proposal aimed at curbing the use of offshore tax shelters by Canadian corporations. The plan focuses on tightening regulations and increasing transparency to ensure businesses pay their fair share in taxes.
According to the NDP’s proposal, companies would be required to justify any offshore financial operations by demonstrating a legitimate business need. The plan also includes mandatory public financial reporting on a country-by-country basis, along with a comprehensive review of the existing tax code to identify and eliminate loopholes that enable tax avoidance.
A key element of the strategy is the proposed termination of tax agreements with jurisdictions widely regarded as tax havens—specifically naming Bermuda. The party criticized Bermuda’s favorable tax environment, noting that it had no corporate income tax until recently, in contrast to Canada’s 15 percent federal corporate tax rate.
The spotlight was turned on Brookfield Asset Management, a global investment firm that registered multiple business entities in Bermuda—at an address also occupied by a local bike shop. The NDP alleged that Brookfield avoided paying approximately $5.3 billion in taxes from 2021 to 2024. This connection gained added attention due to former Bank of Canada Governor Mark Carney’s prior role as Chair of Brookfield’s board, a position he held until stepping down in January to pursue political leadership.
In response to questions regarding Brookfield’s offshore presence, Carney defended the company’s practices, asserting that all arrangements complied with both Canadian and international tax laws. He emphasized that the corporate structure was designed to optimize returns for pension funds.