In negotiations with a number of countries that have earned a well-deserved reputation for being tax havens, Canada is on the verge of signing its first bilateral tax information exchange agreement (TIEA) with Bermuda, granting the islands a significant tax benefit that would give it an unfair advantage over Canada’s tax treaty partners, according to tax experts.

“The Canadian government has long complained about Canadians using tax havens,” noted Lorne Saltman, a tax lawyer with the law firm Cassels Brock in Toronto. “This seems to encourage it – a rather perverse tax policy.” (more…)