Carney’s green funds at Brookfield used Bermuda tax haven to attract investors

Liberal Leader Mark Carney, during his time at Brookfield Asset Management, co-chaired two investment funds focused on the transition to a net-zero carbon economy. These funds, totaling $25 billion, were registered in tax-friendly locations such as Bermuda, providing investors with significant tax advantages. The Brookfield Global Transition Fund ($15 billion) and the Brookfield Global Transition Fund II ($10 billion) were established in 2021 and 2024, respectively.

Despite the complexity of the legal structure involving multiple jurisdictions, the registration of these funds in Bermuda has raised concerns about Carney’s approach to fiscal policy in Canada. Political analyst Silas Xuereb from Canadians for Fair Taxation highlighted that many companies, including Brookfield, utilize tax havens for financial gain. Xuereb emphasized the need for stricter regulations on tax havens to prevent tax evasion and ensure fair taxation practices.

Conservative MP Michael Barrett called for Carney to clarify Brookfield’s use of offshore entities, questioning the transparency of the investment funds. Barrett asserted that Canadians deserve a leader who prioritizes the country’s financial interests. Carney, along with Connor Teskey, CEO of Brookfield Renewable Power, managed the funds, aiming to deliver financial returns while making positive environmental impacts.

The revelation of Carney’s involvement in tax havens has sparked debates in federal politics, reminiscent of past controversies involving prominent figures like former prime minister Paul Martin. The Center for International Corporate Tax Accountability and Research criticized Brookfield’s tax policies, including its use of Bermuda entities. In response, Brookfield defended its compliance with tax regulations and emphasized the varying corporate tax rates globally.

The New Democratic Party (NDP) condemned Brookfield’s tax practices, attributing billions in lost corporate taxes to the company’s use of tax havens. NDP MP Niki Ashton urged Carney to address his role in Brookfield’s tax avoidance strategies and called for transparency regarding the firm’s financial practices. As the federal election approaches, the issue of tax havens continues to be a contentious topic, with calls for stricter regulations and accountability in the financial sector.