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

Sat Apr 12 17:40:00 UTC 2025: ## Carney’s Brookfield Funds Registered in Tax Havens Spark Political Firestorm

**OTTAWA** – The use of offshore tax havens by Brookfield Asset Management, where Liberal Party leader Mark Carney served as a board member, has ignited a heated political debate in Canada. Records obtained by Radio-Canada reveal that three Brookfield investment funds, totaling $30 billion, were registered in Bermuda and the Cayman Islands during Carney’s tenure (2020-2025).

While Brookfield maintains the structures are legal and compliant with international tax standards, ensuring Canadian investors pay taxes appropriately, opposition parties are raising concerns. The Conservatives are demanding Carney publicly disclose the assets he placed in a blind trust upon assuming leadership, alleging he leveraged political connections to enhance his personal wealth. They point specifically to the $5 billion Catalytic Transition Fund, registered in the Cayman Islands, and two other funds totaling $25 billion registered in Bermuda.

Carney defends the use of offshore jurisdictions, citing efficiency rather than tax avoidance, stating that the current structure mirrors practices used by Canadian pension funds. He asserts that Canadian entities receive the funds and pay taxes accordingly.

However, critics argue that the use of tax havens, even if legal, raises ethical questions and potentially allows for reduced tax payments in foreign countries. Tax expert Jean-Pierre Vidal from HEC Montréal explains that while Canada may not lose revenue directly, these structures allow companies to reduce costs and ultimately increase profits.

The NDP and Bloc Québécois are also calling for greater transparency, with the NDP leader promising to end tax agreements with jurisdictions like Bermuda and the Bloc leader demanding Carney reveal his foreign assets. The debate underscores the ongoing scrutiny surrounding the use of offshore tax havens by large corporations and the transparency of political leaders’ financial dealings.

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