The Canadian agency that invests the pension funds of civil servants set up a complex scheme which a German tax official called “a very aggressive way to avoid taxes.” The public broadcaster, CBC received leaked documents illustrating a network of European shell companies and loopholes that were exploited to avoid paying foreign taxes.
The arrangement involved some entities in the financial secrecy haven of Luxembourg which invested money in real estate in Berlin. The blueprint for the plan was obtained by the Washington-based International Consortium of Investigative Journalists and was shared with CBC News.
While the transactions were not illegal, they come at a time when Canada has signed on to international efforts to crack down on tax avoidance lead by the OECD and the G20.
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