The release of a joint CBC / Toronto Star investigation earlier this week
has made headlines across the world and calls Canada's tax
system into question.
Most Canadians would argue that Canada's tax rates are among
the highest in the world and that the Canadian tax system is
designed to ensure that income earned in Canada is subject to
Canadian income tax, whether that income is earned by an
individual, a corporation, a partnership, joint venture, or any
other form of organization. In the normal course, a Canadian entity
earning income in Canada from a business or property is required to
report, calculate, and remit income taxes on such income to the
Canada Revenue Agency.
The CBC and the Toronto Star used the term "snow washing" to refer to the use of
Canadian corporations and limited partnerships as part of complex
offshore money laundering and tax evasion schemes, due to the
perception of the legitimacy of such Canadian entities and
Canada's reputation as a
