Brookfield used Cayman Islands to register 3rd fund managed by Carney

Daniel Leblanc · CBC News

· Posted: Apr 10, 2025 1:05 PM EDT | Last Updated: 3 minutes ago

A $5-billion concern money created nether Mark Carney's enactment astatine Brookfield Asset Management was registered successful the Cayman Islands taxation haven, according to records obtained by Radio-Canada.

That's successful summation to 2 different funds totalling $25-billion that were registered successful Bermuda, different offshore taxation haven, erstwhile the Liberal person headed the steadfast from 2020 to 2025.

In each 3 cases, the structures are legal, respect planetary taxation standards and are commonly utilized by concern firms. They besides guarantee Canadian investors wage taxes connected the profits from their investments successful Canada, and not successful overseas countries.

Brookfield refused to reply questions connected its usage of taxation havens arsenic portion of the structuring of its funds. In past nationalist statements, the steadfast has insisted it does not prosecute successful taxation avoidance, and that each its entities wage each required taxes successful the jurisdictions successful which they operate.

Other governmental parties person said the firm's usage of taxation havens raises questions astir Carney's activities successful the backstage sector, and his imaginable absorption of taxation issues if the Liberal Party of Canada wins the April 28 election.

The Liberal Party did not respond to questions astir the registration of the money successful the Cayman Islands.

A question of 'efficiency'

In effect to aggregate questions from the media during the campaign, the Liberal person has said the determination to registry 2 Brookfield funds successful Bermuda was a question of "efficiency," not taxation avoidance.

"The flow-through of the funds goes to Canadian entities who past wage the taxes appropriately, arsenic opposed to taxes being paid aggregate times earlier they get there. So that's however we person this structure. That's the operation that each of our pension funds follow," Carney said connected March 26.

Brookfield's 2 funds registered successful Bermuda are the Brookfield Global Transition Fund ($15 billion) and the Brookfield Global Transition Fund II ($10 billion), launched successful 2021 and 2024 respectively.

The 3rd fund registered successful the Cayman Islands is called the Catalytic Transition Fund. Launched successful 2024, it aims to put $5 cardinal successful the tract of "clean vigor and modulation assets." Unlike 2 different funds, the Catalytic Transition Fund specifically aims to put successful projects located successful emerging markets.

The fund's archetypal capitalist was Altérra, financed by the United Arab Emirates and billed arsenic the largest backstage clime concern fund. The Caisse de dépôt et placement du Québec besides yet invested successful the fund, among others.

'It means you're making money'

Tax adept Jean-Pierre Vidal, a prof of accounting sciences astatine HEC Montréal, says the usage of taxation havens remains poorly understood by galore citizens, particularly due to the fact that their usage has been severely restricted successful caller years.

"As acold arsenic Canada is concerned, taxation havens are utilized to trim taxes paid successful overseas countries," Vidal said, explaining they assistance companies wage much taxes successful their location state erstwhile their investments are repatriated.

Still, helium said jurisdictions with debased oregon minimal levels of firm taxes assistance trim costs for companies similar Brookfield.

"Canada was not a loser — successful fact, it was a winner — but it's definite that these companies made much wealth due to the fact that they were successful these places. This is what we mean by efficiency…. It means you're making money."

The European Union publishes a database of "non-cooperative" jurisdictions for taxation purposes, but neither Bermuda nor the Cayman Islands has been connected it since 2019.

According to accounting steadfast PwC, determination is nary firm taxation successful the Cayman Islands, portion Bermuda introduced a 15 per cent corporate taxation complaint this year, with a bid of exemptions for immoderate firm entities. Brookfield's funds registered successful Bermuda are backstage and their nonstop taxation presumption is unknown.

Political opponents instrumentality aim

The Conservative Party has kept connected raising imaginable conflicts of involvement stemming from Carney's clip astatine Brookfield, which is peculiarly progressive successful the tract of renewable vigor and greenish technologies.

The Conservatives besides criticize the information that Carney did not disclose the assets that helium placed successful a unsighted spot erstwhile helium became Liberal person and premier curate past month, including those helium would person acquired during his clip astatine Brookfield from 2020 to 2025.

Earlier this week, Conservative Leader Pierre Poilievre minimized the worth of Carney's clip successful the backstage sector, alleging his Liberal counterpart benefited from his governmental connections to summation his idiosyncratic nett worth.

Carney has said helium created his unsighted spot successful collaboration with the morals commissioner, and that anti-conflict screens are successful spot to debar immoderate treatment affecting Brookfield.

Last week, the person of the NDP promised to enactment an extremity to taxation agreements betwixt Canada and jurisdictions similar Bermuda. 

"We suffer tens of billions of dollars each twelvemonth due to the fact that of taxation havens, due to the fact that of large companies avoiding countries their just share," said Jagmeet Singh. 

Bloc Québécois person Yves-François Blanchet called connected the Liberal person to "reveal his overseas assets."

"Mr. Carney thinks that taxes are simply for mean people, and not for millionaires oregon billionaires similar him," the Bloc person said.