- The document discusses offshore tax havens and their impact on tax revenues. It notes that tax havens cost global economies billions each year and likely cost Canada between $8-10 billion annually. - It outlines Canada's actions to address tax havens through initiatives like the OECD's BEPS and increasing transparency around corporate registrations. However, more can still be done to close loopholes and ensure multinationals and individuals pay the proper amount of taxes. - Stronger action is needed from the OECD and countries to shut down tax havens through coordinated policy changes and crackdowns.

1. OFFSHORE TAX
HAVENS
BY: PAUL YOUNG, CPA, CGA
JULY 23, 2020

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Emerging Technology
• SME – Business Process Change
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. SUMMARY
• Tax havens cost the global economy billions - https://www.theguardian.com/global-development-
professionals-network/2016/may/10/were-losing-240bn-a-year-to-tax-avoidance-who-really-ends-up-
paying
• Canada has joined other countries with the implementation of BEPS -
https://www.osler.com/en/resources/regulations/2018/canada-begins-ratification-process-for-
multilateral-tax-convention-to-implement-beps
• More needs to be done to shutdown trust funds held in tax havens.
http://nationalpost.com/news/politics/stephen-bronfman-lead-fundraiser-for-trudeau-in-2015-linked-
to-offshore-tax-haven-paradise-papers
• CRA and Tax policies along tools are required to go after tax havens.
• Trudeau and Morneau seem to be too focus on small business tax grab than going after tax havens. Tax
havens likely cost the treasury about $8B to $10B per year.

4. AGENDA
• Offshore Tax Havens
• Offshore Tax Havens – Canada / GDP$
• Canada and Tax Havens
• OECD and Tax Havens (Corporation / BEPS)
• OECD / Tax Havens
• Canada Tax Havens

5. OFFSHORE TAX
HAVENS
Source -
https://www.nextbigfuture.com/201
7/09/over-10-of-the-world-gdp-is-in-
offshore-bank-tax-
havens.html?utm_source=feedburner
&utm_medium=feed&utm_campaign
=Feed%3A+blogspot%2Fadvancednan
o+%28nextbigfuture%29

6. CANADA AND OFFSHORE TAX HAVENS
• Source - https://www.nextbigfuture.com/2017/09/over-10-of-the-world-gdp-is-in-offshore-bank-tax-havens.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29 and Stats Canada
Offshore
Tax Havens
5%
Offshore
Tax Havens
$87B
GDP % GDP$
Estimated tax impact $6B to $8B
Liberals will tie up CRA doing small business
audits when the big money is with tax
havens

7. CANADA AND TAX HAVENS
Source - http://projects.thestar.com/panama-papers/canada-is-the-worlds-newest-tax-haven/
Toronto Star – January 25, 2017
Federal Finance Minister Bill
Morneau says his government sees
this as an important issue and that
he is working with his provincial
colleagues to bring greater
transparency to the corporate
registration system.
“We as a government, and I
personally, am committed to
making progress on ensuring
that we are not providing any
haven for any inappropriate
activities and that we’re
having companies and
individuals paying the share
of tax that should be due,” he
said in an interview.
Toronto Star – January 25, 2017

8. OECD AND TAX
HAVENS (BEPS)
Source -
http://www.taxjustice.net/2015/10/0
5/press-release-oecds-beps-
proposals-will-not-be-the-end-of-tax-
avoidance-by-multinationals/

9. OECD AND TAX
HAVENS
Source -
https://www.brookings.edu/blog/fut
ure-
development/2017/09/14/finding-
the-missing-linkages-in-your-tax-
base/

10. PARADISE PAPERS
Source - http://www.ctvnews.ca/business/cra-vows-action-on-canadian-tax-evaders-exposed-in-paradise-papers-
1.3664837?cid=sm%3Atrueanthem%3Actvnews%3Apost&utm_campaign=trueAnthem%3A+Trending+Content&utm_content=5a0040d819694a000705dd5e&utm_medium=trueAnthem&utm_source=facebook or
http://www.cbc.ca/news/business/paradise-papers-canadians-1.4386839
The Canada Revenue Agency says it won't hesitate to investigate new evidence of offshore
tax evasion in the wake of a second massive leak of tax haven financial records.
The leak of some 13.4 million records, dubbed the Paradise Papers, lifts another veil on the
often murky ways in which the wealthy - including more than 3,000 Canadian individuals and
entities - stash their money in offshore accounts to avoid paying taxes.
Among the names that pop up in the records with some connection to offshore accounts are
former Canadian prime ministers Brian Mulroney, Paul Martin and Jean Chretien, the Queen,
U.S. commerce secretary Wilbur Ross, and the past and current chief fundraisers for the
federal Liberal party.
CTV News – November 6, 2017

11. APPLEBY
Source - http://www.cbc.ca/news/business/paradise-papers-canadians-1.4386839 or https://www.thestar.com/news/paradise-
papers/2017/11/06/blue-chip-law-firm-appleby-had-strong-canadian-ties-leaked-documents-show.html
• If the liberals were so concerned about tax fairness then they would close down the ability to
offshore money to low tax jurisdiction through elaborate scheme of holding companies.
• CRA needs more manpower including tools to go after tax havens

12. OECD / TAX HAVENS
Source - https://www.imf.org/external/pubs/ft/fandd/2019/09/tackling-global-tax-havens-shaxon.htm

13. CANADA
AND TAX
HAVENS

14. WHAT’S NEEDS TO HAPPEN
• OECD needs to work with country on closing tax havens - https://www.independent.co.uk/news/business/news/tax-
avoidance-dodging-multinationals-uk-netherlands-oecd-a9611231.html
• Tax fairness needs to be emphasize including closing down tax loopholes - https://www.slideshare.net/paulyoungcga/are-
wealth-tax-a-good-idea
• Refining taxes in relationship to automation – eCommerce / digital economy -
https://home.kpmg/xx/en/home/insights/2019/06/tnf-digital-economy0.html
• Automation will replace many jobs. All governments need to look at robot tax - https://qz.com/911968/bill-gates-the-robot-
that-takes-your-job-should-pay-taxes/
• Tax fairness and social policy - https://www.slideshare.net/paulyoungcga/designing-social-programs-and-tax-fairness-policies
• More use of AI, RPA, etc. as part of tax audits - https://www.slideshare.net/paulyoungcga/internal-audit-and-performance-
base-auditing

15. OTHER SOURCES
• If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA CGA