Evidence of meeting #18 for Access to Information, Privacy and Ethics in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was carney.
A video is available from Parliament.
Conservative
The Chair Conservative John Brassard
Thank you, Mr. Beber.
Thank you, Mr. Gourde.
Mr. Saini, go ahead for five minutes, please.
Liberal
Gurbux Saini Liberal Fleetwood—Port Kells, BC
Thank you, Mr. Beber, for coming.
We had experts here in the past from a tax point of view. Tax avoidance is not illegal in Canada. Any company that wants to do business in any country wants to make sure that where they invest will be profitable, whether it's Cayman Islands, Bermuda or Canada.
Our taxes are so very good. Lots of companies are investing in Canada today, because we need them. We need businesses to grow. We need the economy to grow.
Is there anything wrong with what my opponents have been asking about all of these times?
Chief Operating Officer, Brookfield Corporation
Is there anything wrong? I would say that, no, tax policy is engineered to ensure Canada remains competitive. Every country, certainly in developed economies, has the same objective.
It's a competitive world. We have to be able to compete on a level playing field with other companies, but we do it in accordance with and in applying all rules and complying with those rules.
Liberal
Gurbux Saini Liberal Fleetwood—Port Kells, BC
Has Brookfield ever been charged criminally or under tax laws for being a bad corporation?
Liberal
Gurbux Saini Liberal Fleetwood—Port Kells, BC
As long as you are doing business in Canada or across the world in a fair way, I don't understand what my colleagues on the other side are having difficulty with.
Chief Operating Officer, Brookfield Corporation
I would agree. There are rules in place that govern all companies in terms of the way they invest internationally. Those rules are there to facilitate economic productivity while also ensuring that all corporate players pay their fair share of taxes. There should be nothing wrong with that, and that is how Brookfield conducts its business.
Liberal
Gurbux Saini Liberal Fleetwood—Port Kells, BC
Thank you.
In conflicts of interest, we deal with screens and we deal with blind trusts. As chief operating officer of a big corporation in the private sector, do you have such things in place?
Chief Operating Officer, Brookfield Corporation
As I mentioned before, we address conflicts of interest through the same types of systems that I see being implemented with respect to the blind trusts.
They're not the same. I don't want to give the committee an indication that they're the same, but underlying them are the same principles: that one needs transparency to ensure the conflicts that exist are identified, and that they are then addressed appropriately, whether it's through a blind trust, a screen or any other mechanism.
Liberal
Gurbux Saini Liberal Fleetwood—Port Kells, BC
If we wanted to change tax law, it is up to the Parliament of Canada. It's not up to the Conflict of Interest Act to change those laws. Parliament, when they see fit, will make sure those changes are made. For people to accuse, well, we are trying to...that's the duty of the Parliament of Canada and the Income Tax Act.
Could I have your comment on that, please?
Chief Operating Officer, Brookfield Corporation
Yes, I fully agree. I think we're conflating two very different matters or topics—a piece of legislation that is designed to manage and oversee the behaviour of personnel who enter government and how anything they bring to their office from their history is addressed, versus tax policy, which is a completely separate topic.
Conservative
The Chair Conservative John Brassard
Thank you, Mr. Saini.
Mr. Beber, we're going next to Mr. Barrett for five minutes.
We will now move on to Mr. Sari.
We will then conclude the first hour of the meeting.
Mr. Barrett, you have five minutes. Go ahead, please.
Conservative
Michael Barrett Conservative Leeds—Grenville—Thousand Islands—Rideau Lakes, ON
Just to follow up on a few points, has Brookfield Global ever been criminally charged with anything like bribery, for example?
Conservative
Michael Barrett Conservative Leeds—Grenville—Thousand Islands—Rideau Lakes, ON
Has there ever been an investigation for bribery against Brookfield Asset Management?
Chief Operating Officer, Brookfield Corporation
Nothing that has not been found to be completely false.
Conservative
Conservative
Michael Barrett Conservative Leeds—Grenville—Thousand Islands—Rideau Lakes, ON
There was no investigation into bribery in Brazil?
Chief Operating Officer, Brookfield Corporation
Again, that was found to be completely false and, in fact, the person who was alleging is now in jail.
Conservative
Michael Barrett Conservative Leeds—Grenville—Thousand Islands—Rideau Lakes, ON
Okay.
Is Brookfield registering investment funds to a bike shop in Bermuda good for Canada and what impact does that have on the payment of taxes in Canada?
Chief Operating Officer, Brookfield Corporation
As I've said before, first and foremost, we have businesses that do have a presence in Bermuda. Those are part of an overall investment structure that allows investors to pool their capital in jurisdictions where we can achieve tax transparency so that businesses that we own can pay taxes in the jurisdictions in which those businesses operate. Then, those after-tax proceeds can be delivered to investors in the jurisdictions where they are based and pay taxes as well.
Conservative
Michael Barrett Conservative Leeds—Grenville—Thousand Islands—Rideau Lakes, ON
Is your answer that it's good for Canada to register funds to a bike shop in Bermuda?
Chief Operating Officer, Brookfield Corporation
I'm not passing judgment on what's good or not. I'm saying what these rules are implemented to achieve.
Conservative
Michael Barrett Conservative Leeds—Grenville—Thousand Islands—Rideau Lakes, ON
Are you able to provide us with a list of investments in the catalytic transition fund and the global transition funds I and II? Is that something you're able to furnish to the committee?