Canada’s network of 92 tax treaties and 23 Tax Information Exchange Agreements (TIEAs) have opened up the floodgates for Canadian companies to use tax havens. Unlike the United States, which makes its multinationals pay tax on money earned overseas, Canada allows its companies to bring home foreign profits tax free, as long as they’re routed through a tax treaty or TIEA partner. Since the first TIEA came into force in 2011, Canadian business investment in these countries has doubled to more than $108.2 billion. Because every country Canada has signed a TIEA with is considered a tax haven, much of this money isn’t taxed at all.
By Marco Chown Oved
