A new report from the Centre for International Corporate Tax Accountability and Research (CICTAR) reveals how Brookfield, owner of London’s Canary Wharf and New York’s Manhattan West, pays consistently low rates of tax and exploits global tax havens and loopholes.
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Through complex corporate structures, with an exceptional reliance on Bermuda, Brookfield manages over $800 billion in global assets. Related party debt payments and other artificial transactions may substantially reduce taxable income where profits are earned. Brookfield’s aggressive tax avoidance schemes appear to deprive governments and communities of much-needed revenue for essential public services, including health and education.
This contrasts with Brookfield’s claim that sustainability is “fundamental to our business and how we create value”. Brookfield’s tax practices and its impact on local communities are anything but sustainable. The global giant provides the bare minimum reporting on tax and its shareholders and fund investors are left in the dark.
The report’s case studies – from the United Kingdom, Australia, Colombia, and Brazil – highlight potential risks for investors, providing a strong case for shareholders to support greater tax transparency through adherence to the Global Reporting initiative (GRI) tax standard as required in the shareholder resolution.