In his time in Brookfield Asset Management, liberal leader Mark Carney personally co -chanted two investment funds dedicated to the transition to a zero net carbon economy, with a value of a total of $ 25 billion.
These funds were recorded in Bermuda, among other places, which allows investors to benefit from important tax advantages, according to the information obtained by Radio-channel.
The funds created while Carney was on Brookfield’s board are the Brookfield Global Transition Fund ($ 15 billion) and the Brookfield Global Transition Fund II ($ 10 billion), launched in 2021 and 2024 respectively.
According to the Ontario Business Registry, the funds were recorded in Bermuda under the names of BGTF Bermuda GP Ltd. and BGTF II Bermuda GP Ltd.
In both cases, the Provincial Registry indicates that the “government jurisdiction” for corporations is found in Bermuda.
Ha for widely used tax havens
The legal structure of Brookfield funds is complex and includes many jurisdictions. However, experts say that their registration in Bermudas raises questions about Carney’s approach to fiscal policy in Canada.
“All kinds of companies are doing this … but [Brookfield] They are one of the greatest users of this type of scheme, “said Silas Xuereb, a political analyst of the Canadian group for fair taxes.
He says that he hopes that the next federal government will impose new limits to the use of fiscal paradises, in particular by putting an end to bilateral agreements with countries such as Bermuda and strengthening international treaties to curb tax evasion.
Xuereb said it may seem “ironic” that environmental funds were registered in a tax haven.
But he said that Carney was understandably motivated by profits in the private sector, and expects the liberal leader “to have very different objectives now that he is in a political power.”
Conservative deputy Michael Barrett said Carney should explain the use of foreign entities by Brookfield.
“Mark Carney needs to explain to the Canians why he used accounts on the high seas to avoid paying taxes for the funds he established and managing. Canadians deserve a leader who puts Canada first,” Barrett said in a written statement.
On Wednesday, NDP leader Jagmeet Singh criticized Carney and said the liberal leader “decided to register [the funds] In another country to avoid paying those taxes. That is less money for medical care. Less money for older people. That is less investments in our country. “
According to press releases issued by Brookfield at that time, BGTF and BGTF II were “copitantes” by Carney. The other fund manager was Connor Teskey, CEO of Brookfield Renewable Power.
During a press conference in Windsor, Ontario, on Wednesday morning, Carney said that “the structure of these funds is designed to benefit Canadian pension funds that invest in them,” citing the Caisse de dépôt et placement du québec and the Pension Plan of the Ontario teachers.
“I understand how the world works and how these structures work,” said Carney.
The taxes are paid in Canada, added Carney, because the “flow of the funds goes to the Canadian entities that pay the taxes properly, instead of the taxes that are paid several times before they get there.”
A spokesman for the Liberal Party refused to answer questions about Carney’s activities in Brookfield or if he had assets in tax havens before they were put in a blind confidence.
“Mr. Carney worked for Brookfield from August 2020 to January 2025, and has not been involved with the company since then. Any question specifically related to Brookfield must be sent to the company,” said spokesman Mohammad Hussain.
In a statement in 2024, Carney said that “the Brookfield Global Transition Fund strategy aims to offer strong financial yields adjusted to investors and have significant environmental impacts for people and the planet.”
Located in the middle of the Atlantic Ocean, Bermudas is among the largest tax shelters in the world. Canada’s investments to the country have increased from $ 10 billion in 2011 to more than $ 130 billion in 2023.
The issue of tax havens often raises passions in federal policy. Former Prime Minister Paul Martin was remarkably attacked by conservatives about the use of his company from his shipping company.
In a report published in 2023, the International Corporate Tax Responsibility and Research Center criticized Brookfield fiscal policies, including the use of entities in Bermuda.
The firm replied that it complied with all fiscal rules, explaining that the company manages large infrastructure companies that pay their taxes in the jurisdiction where they are.
“We would also observe that jurisdictions worldwide have substantially different corporate tax rates and offer important tax incentives for investment, for example in sectors such as renewable energy in which Brookfield is a recognized global leader,” said the firm.
In a press release earlier this month, the NDP declared that the use of fiscal paradises by Brookfield has led to the loss of billions in corporate taxes.
In a statement, NDP deputy Niki Ashton asked Carney “to clarify his role in Brookfield’s exploitation practices to avoid paying their taxes in Canada while working on Canadians pay their own.”
