Tax avoidance: Canadian companies transferred $120B to Luxembourg, study says

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Tax avoidance: Canadian companies transferred $120B to Luxembourg, study says
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MONTREAL — A Quebec research institute says some of Canada's biggest companies have transferred billions of dollars in profits to Luxembourg to avoid paying domestic taxes.

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The research published today by IRIS says 59 Canadian companies — including 33 headquartered in Quebec — transferred some $119.8 billion in net profits to the European low-tax country over a period of about 10 years.

The study notes that tax avoidance strategies aren't illegal but violate the"spirit" of the law because they permit companies to pay ultra-low taxes in jurisdictions other than where the majority of their economic activities occur.

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