The contact

Page 1

THE CONTACT WEEKLY NEWSPAPER ISSUE - 744, 7 - 13 NOVEBER, 2017 PH: (905) 671 - 4761

Paradise Papers: Biggest data leak reveals trails of India’s corporates in global secret tax havens Written by Ritu Sarin, Jay Mazoomdaar, Sandeep Singh The Paradise Papers is the fourth collaborative investigation into offshore and banking assets done by The Indian Express with the ICIJ. Among the 180 countries represented in the data, India ranks 19th in terms of the number of names. In all, there are 714 Indians in the tally. Two days before the Government observes “Anti-Black Money Day” to mark the first anniversary of demonetization, comes the largest ever leak of financial data. Of two firms Bermuda’s Appleby and Singapore’s Asiaciti with 19 tax havens across the world which help the global rich and powerful, including from India, to move their money abroad. This cache of 13.4 million documents named “Paradise Papers” tumbled out 18 months after Panama Papers: both sets of data were obtained by German newspaper

Süddeutsche Zeitung and were investigated by the International Consortium of Investigative Journalists (ICIJ) working in partnership with 96 news organizations. What Are Paradise Papers? In India, The Indian Express, just as it did with the Panama Papers, investigated these records for over 10 months to come up with the India findings which will be published in a series of over 40 investigative reports

that begins tonight. A bulk of the records investigated are from Bermuda law firm Appleby. Although not a tax advisor, this 119-year-old company is a leading member of the global network of lawyers, accountants, bankers and other operatives who set up offshore companies and manage bank accounts for clients to do one or a combination of the following: avoid or evade taxes; manage real estate assets; open escrow

accounts; purchase airplanes and yachts paying low tax rates; or, simply, use offshore vehicles to move millions across the globe. Shining the light Setting up offshore entities for corporate restructuring or expansion in a rapidly globalizing world may not be illegal but it raises a crucial issue: how firms such as Appleby help MNCs exploit loopholes in law to avoid

legitimate taxes in their country. That’s why Paradise Papers open the door for regulatory bodies to investigate and ascertain the legitimacy of these offshore transactions. Among the 180 countries represented in the data, India ranks 19th in terms of the number of names. In all, there are 714 Indians in the tally. Interestingly, it’s an Indian company, Sun Group, founded Continued on Page 4 by Nand

Immigration minister CRA promises ‘appropriate action’ on tax haven use after Paradise Papers leak dismisses Trump security concerns over newcomers

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 Canadian Revenue Agency is promising

action after an international investigation pulled back the curtain on more than 3,000 Canadian companies, trusts, foundations and individuals who use offshore accounts as tax havens. The leak, rivalling the Panama Papers in size and scope, involves a cache of nearly 13.4 million files from two offshore services firms and 19 different tax havens. The list includes a who’s who of the world’s elite, including the Queen, Prime Minister Justin

Trudeau’s chief fundraiser, U.S. President Donald Trump’s commerce secretary, Russian oligarchs and former Canadian prime ministers Brian Mulroney, Paul Martin and Jean Chrétien. “The CRA is reviewing links to Canadian entities and will take appropriate action in regards to the Paradise Papers,” said spokesperson John Power. An investigation by the CBC, Radio-Canada and the Toronto Star has found that philanthropist and financier Stephen Bronfman, an heir to the Seagram whisky fortune and a close Trudeau family friend, and his Montreal-based investment company, Claridge Inc., were key players linked to a $60-million US offshore trust in the Cayman Islands that may have cost Canadians millions in unpaid taxes. The investigation also revealed how Bronfman’s longtime law firm — which also represented other offshore clients — helped mount a lobbying campaign in Ottawa that for several years fought legislation designed to crack down on offshore trusts. Bronfman denies using offshore trusts Bronfman issued a statement Monday saying Continued on Page 2 he’s never funded nor

Rachel Aiello, Ottawa News Bureau OTTAWA Immigration, Citizenship, and Refugees Minister Ahmed Hussen is dismissing American-style security concerns over immigration, putting Canada’s new plan to bring in nearly a million newcomers over the next three years in stark contrast with the recent U.S. clampdown under Donald Trump. Hussen called Canada a “world leader” in settling and integrating immigrants, and said despite security concerns raised by some — including Trump — it’s possible to increase immigration while mitigating potential security concerns. “We don’t have to make a choice

between the two. You can be rigorous in your screening for security, for health, for criminality. At the same time be ambitious in immigration,” said

Hussen in an interview with Evan Solomon, host of CTV’s Question Period, championing Canada’s different direction as the right economic move. On Wednesday the federal government announced a threeyear plan Continued on Page 4


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.