Please take a few minutes to listen to this episode of The Current on offshore tax evasion.
This documentary applies to the US as well as Canada. It points out how governments target the underground economy instead of the offshore economy. The offshore economy is estimated to contain 10-15% of the world’s wealth. The Cayman Islands and Bahamas have been set up by banks, such as the Royal Bank of Canada to, assist greedy people and corporations to avoid paying taxes. Why should this group be allowed to avoid taxes? Lobbyists, lawyers and accountants working for their rich clients may try to explain why such tax avoidance schemes should be allowed but there really is no “public good” reason that governments should allow offshore tax havens let alone assist in setting them up. The bottom line is that there is absolutely no good reason that offshore tax havens should be allowed. Absolutely nothing justifies the use of tax havens. Period!
What is so alarming is that these offshore tax havens, many set up by Canadian Banks, clearly demonstrates that our government is complicit in abetting corporations and rich individuals in avoiding paying their fair share of taxes. Canada is a rich country but it appears that the rich are cheating the tax system.
Ask corporations you deal with if they employ offshore tax haven accounts. If they do make it personal. Expose them as poor corporate citizens and boycott them. Realize that their lack of paying taxes requires you to pay a greater share and/or suffer the austerity imposed repercussions of reduced services. This in a rich country no less. Ridiculous. Also, realize that the government's attempt to focus on the underground economy is a diversion tactic, which turns us all against each other rather than focus on the bigger problem of evasion and avoidance. Lost revenue from the underground economy is miniscule compared lost revenue from this illicit offshore economy.
Wealth management has become a euphemism for tax evasion. Accountants would prefer “avoidance” - another euphemism. Money today is worth more than money tomorrow so avoidance today means evasion. Let’s call a spade a spade. Why can’t we elect leaders that had the balls to state this obvious fact and go after the big players in this evasion racket? Canadian banks, specifically the Royal Bank and Scotiabank, are big players in the offshore banking businesses. How much has their wealth management practises allowed their clients to evade Canadian taxes? When, as is estimated 10-15% of the world’s wealth is now located in offshore tax havens, and these Canadian banks are some of the biggest players here, you can bet they do their job of wealth management well.
When this amount of cash is sitting offshore and not working for everyone, is it any wonder after the Great Recession of 2008, that the world’s economy is not recovering? When will the G8 leaders take action? Tell them to shove their austerity programs until this is done. It’s time for a retention tax and a financial transaction tax to bring this money home.
The area of the Bahamas and Cayman Islands was a traditional pirate haven. Now it’s a tax haven - an area where Kleptocracies, organized crime, the wealthy, and corporations conspire to hide money from being recognized or taxed.
Time to clear out a nest of financial pirates. Let’s expose that “hidden hand” in this part of the world and demand our leaders publish the owners of those accounts for everyone to see and revile. What is the purpose of hidden accounts, if not nefarious? Let’s shed some light on them. Anytime you want to get rid of pests you first start shedding light on the situation. Even President Obama recognized the threat and spoke out against hidden offshore tax havens. Why aren’t our Canadian leaders doing the same? Before reducing social services to the most vulnerable in society, retake this hidden wealth from those so greedy as to avoid being socially responsible.
I hope this information on offshore tax evasion makes your blood boil. Why have our governments not made the practise illegal? It is highly unethical and unproductive. We need to make those companies and people that engage in this practice shamed. Ask any rich person you know if they have offshore accounts and if they do ask them why. The Royal Bank and Scotiabank are big players in this form of wealth management. It’s only business. Sure. Let’s do something about it. Make it personal. Why not boycott those that use offshore tax havens and the banks that are abetting the process? It’s hard to believe a nation would allow its rich citizens to avoid taxes on such an ongoing and blatant manner. Who is our government working for anyway? They’re certainly not serving the public good by allowing and assisting in offshore tax havens.
We should all revile those who practise evading taxes such that the poor and middle class must bare the “austerity” burden as a result. Meanwhile our politicians like Bev Oda recently claimed a $16 per glass of orange juice as an expense on the taxpayers dime.
Share this episode link of The Current on Offshore Tax Havens with as many people you know who might give a dam that they’re being shafted. It’s always good to know who and how you’re being taken to the cleaners. I’m as mad as hell and I hope others will be too. Demand that your MP stop all these tax evasion schemes and close all the tax loopholes allowed to facilitate them. Consider the merits of a flat rate tax system on all income which would eliminate tax avoidance. Demand that those banks that engage in setting up offshore tax havens lose their license to run a bank.
Our present government touts our great banking system. Excuse me. It has a lot of explaining to do. Why is the government allowing and abetting the wealthy and corporations to hide resources offshore with the drug cartels?
For more information on just how pervasive and pervurted offshore tax havens are you may wish to read “Offshore: Tax Havens and the Rule of Global Crime” and this article on by Alain Deneault.
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