“Hold on. While the Trudeau government was giving Loblaws $12 million for freezers the company was sheltering $400 million in a Caribbean tax haven. Zero shame–Nathan Cullen, NDP, via Twitter”
Tax agency claims Barbadian subsidiary was little more than a fund to hold cash
A four-week-long Tax Court trial will weigh the government’s claim that Loblaws took steps to have a Barbados-based subsidiary appear to be a foreign bank in order to avoid paying tax. (CBC)
Loblaw Companies Ltd. and the Canada Revenue Agency faced off in Tax Court on Monday over allegations that the retailer’s Barbadian banking subsidiary had been misused for tax avoidance — a long-running dispute that could cost the retailer more than $400 million.
Department of Justice lawyer Elizabeth Chasson said Loblaw Financial Holdings took steps to have Barbados-based Glenhuron Bank Ltd. appear to be a foreign bank in order to avoid paying tax.
“The appellant has tried to make its treasury centre, whose business is to invest surplus cash until needed by its parents or its affiliates, appear to have the attributes necessary to meet the (Foreign Accrual Property ) Income exemption,” she said in her opening statements on Monday.
“It did so to keep hundreds of millions of dollars offshore from paying tax in Canada.” MORE