K.C. Irving, honoured with a statue facing his former home in Saint John, incorporated a series of offshore holding companies in Bermuda, including F.M.A.
That allowed F.M.A. to accumulate almost $13.4 million in untaxed income between 1973, when it was incorporated, and 2001, the last year for which CBC News and Radio-Canada have financial statements. J.D. Irving Ltd. was listed as a parent company of F.M.A. Ltd., an Irving-owned insurance company in Bermuda.
Geoffrey Loomer, a professor of tax law at the University of Victoria Law School in British Columbia, says it's not surprising the Irving family set up a captive insurance firm."The premiums that they're paying … that's a deductible expense [in Canada], usually. It's income to the Bermuda insurance company. But the tax there is zero."
His fortune has been estimated by Forbes Magazine at between $4.1 billion and $8.3 billion over the last decade. "We're for New Brunswick. This is home," Jim Irving, J.K.'s oldest son and co-CEO of J.D. Irving Ltd., told a committee of the provincial legislature in September 2021. "We're not absentee owners, sitting in New York or Toronto."
But for decades, a large part of their fortune was maintained offshore, including holding companies and the $3 billion trust created by K.C. Irving's will, out of the reach of Canadian tax authorities. The Paradise Papers leak reveals five previously unknown companies using the "F.M." naming convention that have never appeared in the federal database: F.M.C., F.M.E., F.M.F., F.M.H. and F.M.A.
A 1988 letter describes J.D. Irving Ltd. as F.M.A.'s "parent company" and a 1996 document calls Forest Mere its "ultimate parent." The company continued charging more in premiums than what it was spending on reinsurance, accumulating $13.4 million in cumulative net income as of 2001, the last year for which there are leaked financial statements.
Sales of crude oil to the Irving refinery were routed through a Bermuda company that allowed Irving Oil to pay less tax, an arrangement ruled to be legal. Loomer said this was one of several rulings that prompted Ottawa to tighten tax laws in 1994, making it easier to tax more of what he calls "mobile income."Even K.C. Irving's move to take up residence in Bermuda was recently confirmed as a tax avoidance strategy.
They ARE NOT THE ONLY ONES!
Paul Martin did much the same.
They own the government, have the best lawyers and have appointed most of those in charge of 'prosecuting' them.
That's always been known..Where have you guys been..
I can't see how the NB Premier didn't already know this, since he was a Senior Executive for over 30 years, while still giving them tax breaks and grants.
Great. Throw them in jail and nationalize their business. Easy Peasy....
Eat The Rich !
How many NBers do the Irving’s support? Take Irving out of NB..what have you got? Be grateful..not hateful.
20th century news. Wake up CBC, it's the 21 century!!
THEY HAVE BEEN DOING THAT FOR DECADES
Why not ?
Just one more reason to hate the Irvings.
Nice repost without lots of the original negative comments!
This isn’t new. Weren’t the Liberals suppose to fix this?
It's their money, they can do what they want with it.
davidpugliese Who is surprised? I’m curious.
It’s legal. It’s a legitimate way of reducing taxes and we all overpay while our tax dollars are squandered with no accountability. Recent data shows 20% pay 60% of the nation’s taxes. In Canada, you are punished for doing well. We would do the same. And we intend to.
Shocking! 🤷🏻♂️ And, just like following the release of the Panama Papers and the Paradise Papers, we will do a collective fuck all.
It's always been a known fact that Irving doesn't pay taxes .........why do you think they are so friggin rich
And keep in mind they are now asking for another $300M to upgrade their shipyard while stashing all this money abroad. And we know they’ll get it as the liberals are pretty cozy with them.
Based on the laws our politicians have crafted for the donor class.
Who won't want to hide their profits from profligate spending Trudeau that spends 6k per night in an hotel & other wasteful spending by these liberals & their appointees like the governor General.
And good for them, stick the buyback tax up the liberals ass. This is only the start!
I know it’s wrong and all but I can’t say I blame them.
So, a Triangle scheme as opposed to a pyramid scheme?
When questioned about this, Higgs said that there will be no changes in tax breaks, grants or subsidization given Irving by the province. No tax breaks for NBers making $40, 000 and under, those who need it most, but...
Indict the CEO, COO & Board Executives for tax evasion and fraud! Seize all of their assets, liquidate it!
Up until this year, Irving owned virtually all newspapers in NB... since the mid 40's. They still own the publishing. Offshore accounts probably wouldn't even make it to the top 100 list of things that would shock people to hear about them.
Justin Trudeau. Corrupt to the core. The demoralized will still vote for him. They are under a spell for the stupid.
Those billions in taxes will help a lot to Canadians in this hars moments.
Yet people are mad at education workers who can't afford a decent living. When the system is rigged to pit people against each others while the top 1% supported by their marionettes ' the politicians ' are laughing in disdain.
Except they are Liberal insiders so it's all good. See SNC for reference
When JustinTrudeau taxes corporations so excessively can you really be surprised.
Doesn’t matter, their liberal friends in Ottawa will keep giving them government contracts.
Good for them.
I like how people can (rightfully) point out the problem with Irving, but then they go and worship Pfizer. No consistency at all.
One of Morneau and Trudeau's first moves was to go after small businesses, painting all as rich greedy doctors & lawyers using tax loopholes (which were rules their own party brought in decades ago). They never went after offshore accounts and tax havens. Hmmm...I wonder why?
This same story comes out every few years...nothing new and nothing is done about it.
So ..
Surprised?
Was it illegal or is this just another “get the rich” story
One of the Irving's biggest business is largely funded by tax dollars This is the thanks Canadians get
The NB government is fine with Irving dodging taxes and will continue to give them subsidies. Irving owns the provincial government.
Now do the Liberal party of Canada. TrudeauMustGo
Robber barons
I want my tax money back that helped build their shipyard !
While the CRA is busy targeting low-income Canadians because they know they can’t afford legal fights 😣
I wish I could say this but as surprising.
I hide my investments in a TFSA to avoid paying tax. As long as what they did was legal, then it’s fine. If the government does not like it, change the law.
Gee another Liberal supporter with offshore holdings to avoid taxes in Canada.
Go get them, enough in fine to help PWD
All billionaires hide wealth, avoid taxes and exploit loop holes. That’s how you become a billionaire:p
Hard to believe, the wealthy hiding money😂
This should surprise nobody.
And the CRA had no idea?
Come on, Irving and Higgs give us all the Glyphosates we can eat/drink.
My dad, who was born and raised in NB told me about this in the 70's. Little slow on the uptake CBC. This is one of the tax loop holes that was supposed to be closed by the Liberals after they got elected. When are they going to fulfill that promise.
NDP have it right- tax the shit out of the extra rich and big corps!
Remember 2019 “Trudeau government forgives $7.4 million loan for multi-billion-dollar Irving family”
CBC steals billions in tax money from Canadian who would rather see their money go to a constructive use.
TheAgentNDN Nnnnndurrr
Liberals, just like Paul Martin, Trudeau and all the Liberal Elite
lol
So they're just like any other rich family? Got it.
Its ok, they are billionaires. 😑
good for them if legal.
🤣🤣🤣 This is funny to see. Close to 100yrs and THIS is what gets national attention? Low key game is epic.
Good for them
McCains have it stashed in the caymens we heard, and have the ONLY private air strip with a customs agent in Canada
Hmm. Was it Paul Martin that transferred cash out of Canada just prior to his handing down a budget they would have cost Canada Steamship Lines a heavy tax bill?... Asking on behalf of the forgotten peons.
Should be no surprise to anyone. The Irvings have been harvesting NB and its peoples for years. Cheap labour and all the access to natural resources they want.
Rich people hiding money? NO! That never happens! How you think they became rich!!
you should try trudeau and is foundation next...wait he do the same thing...pretty sure all the money he receive from the big pharma is hidden in the bahamas
Smart move
Given the relationship between the Irvings and Trudeau nothing will be done to close that loophole
The company that the JustinTrudeau family is heavily invested in? maybe time for an audit on this too what ya think PierrePoilievre
Because no one see future of canada under liberal govt even I am not millionaire but whatever I have my net worth I am trying to move offshore because I don’t see future of my family and important CBC is mouthpiece of Trudiot and CBC is not allowed to watch in my home 👏👏
GillPowell4
GillPowell4
GillPowell4 Friends of Trudeau. They use the same bank.
🤷♂️It's what all $Billionaires the world over do. And what lowly $Millionaires used to do before them. Not news.
I want my tax money back !!!
See you all couldn't see the forest because they were too busy pretending they were planting all these trees... yeah look at all the wonderful things we're doing Canada.. look at all the wonderful trees were planting Canada.. while they snuck boat loads of bucks down to Bermuda
Show of hands who is shocked by this story.. I'm still stuck at the story where the Irvings were allowed to buy a super duper RoboCop patrol car for the Moncton police and they accepted it ...at no time should this nepotism be allowed to happen
We knows, medias knows, gouvernment knows but nobody do nothing…
Freeze all his assets and cancel his passport
Who is surprised?
Don’t forget Liberal leader Paul Martin’s shipping company Dodging taxes in Barbados
This is exactly why tax the rich does not work. I know a few people who have done this over Canadian tax laws.
just a smart business decision.
You sound surprised.....
Ripping off Canada!!!!!!
It's ok, JustinTrudeau is going to send you some change to get your kids teeth cleaned. Nothing to see here right theJagmeetSingh? I guess the Irving family forgot to pay their protection money this month and they find themselves in the news.
Smart company. With all the taxes we pay it's great they found a loophole
Is that what Trudeau means when he says 'building an economy that benifits everyone'. 🤔
Nothing new. We should be looking at why? As in I why are Canadians paying ridiculously high taxes? Municipal, Provincial and Federal. It never stops! Now a carbon tax so the Feds get more revenue to waste. Let’s reduce carbon emissions by not heating our homes, can’t afford it.
Gross
And Oh! Justin! Don't forget to tax big oil profits! ;)
The rich can pay for accountants who know where and how to bend the rules and navigate through the gaps.
Common knowledge.
Keep looking. I’m sure there’s more.
Trudeau is part of this
And Trudeau let them do it
Are we supposed to be mad at the family for using the loophole, or mad at the government for providing the loophole?
Don't hate the players, hate the politicians that leave open the loopholes
The Elites in Canada work the system. Time for Nation in a Nation so all Provinces can collect and manage their collection of taxes, pensions, and police.
Throw the bums out!
Man they've stolen a lot from Canadians over the years, Risley and Paddick are doing the same!
They got what they needed from JT. No pipelines and more oil imports.
Makes sense if you can do it.
Legalized theft is a book authored by Alain Deneault i recommend it
Yet the CRA will hunt down a regular tax payer owing $0.25 cents.
I've never been to NB but every person I've talked to from there says the Irvings are total snakes
RossMcleanSec Smart
Smart.
They've been using Bermuda to save on taxes for decades, where you've been?
Lol theJagmeetSingh head is going to explode but he still will support Trudeau
Trudeau’s buds will get away with it
Nooooo that can’t be true. Billionaires are benevolent, kind and thinking of how raise up humanity. Not shove it in a mattresses some where!!
Increase taxes on the rich, they leave. What would you expect?
um-yeah... we're aware. 👀
Canadian billionaires made their money in Canada taking advantage of low corporates taxes & gov't subsidies only to squirrel it away in another country! SMDH! CdnTax cdnpoli cdnpolitics TaxTheRich 🤨
Smart. Canadastan is overtaxed.
Friends of liberal_party, supporters of saudi crude imports.
New Law, if caught the fine is the amount moved out of the country.
Oooh wow, if I had known you were actually doing work I would not have signed a petition to end your government sponsored funding! Too bad you hurt to many people
Insane. Those loopholes have to be closed.
Well…they are a mafia owning most of NB. Why go after them now? What’s the feds agenda? Climate change? Destroy an oil producer? Spill it CBC
Acbc is your new American boss directing you to go around finding ways to destroy Canadian own companies
If I did that I be behind bars! Let’s see how this plays out for the upper class
Capitalism should be celebrated. If you’re not a billionaire and moving profits to your tax havens, you’re just not trying hard enough. And stop treating yourself to coffee which isn’t home made.
All government approved
They are very well connected to the liberal party, nothing will be done.
Are we going to start calling them oligarchs yet?
JAIL
Ok, and? What’s your point… how many billions have they paid in taxes? Decimating businesses and burdening everyone with taxes does nothing to stabilize the economy and reduce inflation.
What will Conservatives do differently? Nothing.
there are of course a bunch bots here throwing out whataboutisms to muddy the waters, but also apparently a few actual people cheering on corporate scumbaggery to own the libs; srsly, wtf is wrong w you?
Taxing the rich and preventing them from doing things like this, would solve most of the problems our society is facing. The Irvings, the Westons, and the rest of Canada’s 1% are siphoning off all of Canada’s wealth for themselves.
The ruling class allows loopholes for the wealthy to shelter their money. Yet people still aggressively support government like it’s their God.
Remember the Panama papers?
Now do politicians
They are not the only family in this country moving millions of money out of Canada and into tax haven Bermuda.
CanRevAgency needs to investigate this 🧐 irvingoil
Truly shocking
Noooo G'wan wit ya! What next are those scheming demon Corporations going to conjure up next? Lol Now who is really surprised by this!?!
Lower the tax rates if you don't want profits to leave Canada. No brainer.
👏🏽👏🏽👏🏽
JekyllnnHide Surprise! Of course they did! Large corps have not loyalty to Canada!
That doesn’t sound like anything rich people would do, no way…
And aren't the Irving's connected to the Trudeau's?
Appears to be a function of gov’t tax law. Ball is in your court, legislators.
After seeing Justin Trudeau spend $54 million on an app that was worthless, do you blame them? It's like working your sack off, doing everything right, only to give your money over to a guy that pisses it away as frivolously as trudeau does or straight up steals it?
Corporate taxes should be based on the shareholder dividends. It's the only time they admit how much money they have on hand - right before they give it to their shareholders. This is disgusting.
Greedy, parasitic billionaires with no sense of social responsibility, hoarding away millions in offshore havens so as to avoid paying their fair share toward the common public good of society. every billionaire is a goddamn policy failure
They are the privileged & gouging taxpayers isn't enough they always want more & while Canadians are burdened with taxes the elite in this country avoid them & our Gov and Revenue Canada turn a blind eye as we have spineless elected officials whose concerns are photo ops.
How many New Brunswickers do the Irving’s employ? His many people are fed because of their employment with the Irving’s?
KC Irving has been doing this forever. You're just catching on?
Maybe if we cut their taxes some more, they'll start paying them.
Read between the lines. Trudeau is sending the Irvings a warning they are late with the kickbacks.
Seize assets to cover the fraud.
What else is new?
Anydody surprised? Anybody? Anybody. They’ll be finding another means to find free money shortly
On day one, Trudeau and Morneau went after small business owners changing decades old tax rules and smearing them as using tax 'loopholes' and falsely painting them all as greedy, rich doctors and lawyers. They never once acted on offshore money. Gee, I wonder why?
All billionaires in large corporation have been doing this for decades. Trillions of dollars have been sent offshore, while us hard-working taxpayers flip the bill.
Smart,they should be running our economy.
Ya and? I dont like it but come on who is really surprised.
Shocking, said no one ever.
If what they have done is legal then bugger off, you think turbotax doesn’t take all legal deductions per the tax act
So do all corporations and fat cat rich people which all governments have allowed .
Them and everyone else
Shocking. Close the loopholes.
And bought Saudi oil to do it. Thanks eastern Canadians
Canada allows this corruption to happen. Incompetent Politicians allow this to happen. Imagine how much people's lives would improve if Billionaire's were made to pay their taxes and fair share. The Rich are the largest group contributors to climate crisis as well.
Smart! Good for them
Im glad those greedy pathetic laurentian upper Canadians cannot easily get money from a proud maritime company! Really don’t care about the measly 13.4million over 30 years that’s repeatedly mentioned in the article… that’s NOTHING. Should look into history of gov contracts…
Legal money laundering.
Is Trudeau doing the same thing with the tens of millions of dollars he's made from the covid vaccine?
Shhhhhhh says Trudeau 😏
Trudeau does the same thing. Report on that.
Good
Seeing how the government steals 50% of your income if you make over 200k you’d be an idiot not to do this.
It's time to take all their shit!
Everybody does this. every world leader every politician every rich family and we already forgotten about the panama papers
TaxTheRich WealthTaxTime
Good for them.
Now start reporting on all politicians that do that as well.
To hell with the thousands of jobs the Irving family has created for Canadians.
It's ridiculous and they should go after every cent people should not support them.
That’s ok. Trudeau is in their pocket as well.