• “We need to think deeply about what economic development is and who it is for; and, engage the larger society in that conversation.”

    Dr. David T. Barnard
    President and Vice-Chancellor
    University of Manitoba

  • “Rising income inequality undercuts the trust that is essential for the market system to work.”

    Art DeFehr
    President and CEO, Palliser Furniture.

  • “Investing in people in the new economy is now not just morally sound, but economically rational”

    Alan Freeman
    Cultural Economist

  • “Organizations and societies in which the top few appropriate most of the value are like inverted pyramids – inherently unstable”

    Dr. Hari Bapuji
    Associate Professor, University of Manitoba

  • “The present crisis has overturned many accepted truths: that poverty matters but inequality doesn't is one of the more important.”

    Radhika Desai
    Professor, Department of Political Studies, University of Manitoba

  • “The income gap between rich and poor, between skilled and unskilled workers, has been rising in both developed and less developed countries for a number of years. The trend is disturbing and we must find a way to turn this trend around.”

    Michael Benarroch
    Dean, I.H. Asper School of Business, University of Manitoba

Tuesday, June 4, 2013

Moving Money Offshore

By BEIF Team

The International Consortium of Investigative Journalists (ICIJ) has recently uncovered thousands of individuals in various countries who have resorted to moving money to offshore tax havens in an effort to evade taxes in their home countries. Included in the list are a few Canadians who sought to escape tax rates of 29% at the federal level.

The report is based off of a data dump of 2.5 million files that revealed information about 120,000 offshore companies and trusts and their very rich customers who hired them to move money offshore to escape their domestic tax rates. As the data was so vast, the investigation included many reporters from many different countries including reporters from Canada’s own CBC.

The ICIJ’s work is important as offshore tax havens play a critical role in the increase of income inequality. If tax revenues fall short due to offshore tax havens, it impedes the government’s ability to invest in social services such as education and healthcare. This in turn perpetuates or can even increase inequality as citizens who require these services are left without support.