CBC/Radio Canada and the Toronto Star are part of the International Consortium of Investigative Journalists that reviewed new international tax haven financial records leaked to the German newspaper Sueddeutsche Zeitung. These records, called the Paradise Papers, reveal how the global financial elite avoid and evade paying taxes, thereby leaving the middle, working and poor classes to pick up the bill. Among these elite are Trudeau's #1 donor, Stephen Bronfman, and three former Prime Ministers: Brian Mulroney, Jean Chretien and Paul Martin, as well as former Liberal Senator and fundraiser Leo Kolber and the Queen.
"Our government has long known — indeed, we got elected — on a promise to make sure that people were paying their fair share of taxes," Trudeau said shortly after his election victory. "Tax avoidance, tax evasion is something we take very seriously." But an investigation by the CBC, Radio-Canada and the Toronto Star has found that Bronfman 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. ...
It's a 24-year paper trail of confidential memos and private records involving two prominent families with Liberal Party ties that experts say appear to show exploitation of legal tax loopholes, disguised payments and possible "sham" transactions.
Among the key questions raised:
- Is the trust subject to Canadian tax law?
- Was the trust managed offshore — or in Canada?
- Were "gifts" made to disguise payments?
- Were there false invoices?
- Are taxes owed in Canada? ...
At the centre of the revelations is an offshore entity in the Cayman Islands called the Kolber Trust. It was set up in 1991 by Leo Kolber, who at the time was Claridge chairman and also a Liberal senator. Kolber had been a major Liberal Party fundraiser and once jokingly referred to himself as the Bronfman family's "consigliere." ...
The Kolber Trust had another purpose, too. The Bronfman empire was expanding into Israel and, after working for Claridge in Montreal alongside his father and Stephen Bronfman, Jonathan Kolber then moved to Israel in 1991 to head up the Bronfman efforts. ...
The leaked documents reveal that while Claridge had no official role in the Kolber Trust, most of the initial funding came from the Bronfman family in various forms. Stephen Bronfman personally gave a $5 million US interest-free loan to the Trust in 1997, which was repaid in five months. Over the lifetime of the trust, the Bronfman family and their U.S.-based trusts loaned the Kolber Trust more than $34 million US. And all of it ended up in the no-tax Cayman Islands.
http://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers...