Information & Ethics Committee on Nov. 24th, 2025

[Luc Thériault, Bloc, Montcalm, QC]

What I understand is that you do not want to use the term “tax avoidance”, which is an entirely technical term.

You are not the only ones to practise tax avoidance, presumably. I agree that it is legal.

Here, we need to speak clearly: The fact that something is legal does not mean it is morally acceptable. You will understand our concern, since a study by the Canada Revenue Agency shows that the federal government is being cheated out of $26 billion a year in income and other taxes. In the tax avoidance category, we are talking about $3 billion a year, which is no small sum.

So I would like us to look at the question of a global minimum tax.

How much time do I have left, Mr. Chair?

[The Chair, Conservative, John Brassard]

You have one minute and 40 seconds.

[Luc Thériault, Bloc, Montcalm, QC]

So I will review the history a bit later.

Does Brookfield benefit from the exemption of American companies from the global minimum tax established by Mr. Carney?

[Justin Beber]

No, to the best of my knowledge, we are subject to all those rules in every jurisdiction in which we operate.

[Luc Thériault, Bloc, Montcalm, QC]

What do you mean by “to my knowledge”?

Does that mean that it may be but you are not aware of it?

[Justin Beber]

I think it would be unlikely, but I did not—

[Luc Thériault, Bloc, Montcalm, QC]

What do you mean by “unlikely”?

Are you not able to answer the question with certainty today?

[Justin Beber]

I'm happy to say that Brookfield complies with all laws across the globe relating to tax.

[Luc Thériault, Bloc, Montcalm, QC]

Six months before the decision made by the OECD, the Organisation for Economic Cooperation and Development, to exempt American companies from the global minimum tax, and before Canada adopted that measure, Mr. Carney moved his head office to New York.

Six months later, he announced that American companies are exempt from the global minimum tax, and you say that you do not benefit from that.

That is what you are telling us this morning, that you do not benefit from that.

Is that correct?

[The Chair, Conservative, John Brassard]

Give a very quick response, please.

[Justin Beber]

Absolutely not, and we didn't move anything. I'd love the opportunity to talk—

[Luc Thériault, Bloc, Montcalm, QC]

So why do it?

[The Chair, Conservative, John Brassard]

No, that's it. Thank you.

You may get the opportunity, Mr. Beber. It won't be from me. It may be from some other members of the committee.

That concludes the first round, and we're going to go to the second round, beginning with Mr. Cooper for five minutes—that's 300 seconds.

I just also want you to be mindful of the interpreters, please. Ask the question. Give the response. Ask the next question. That'll just make sure that the interpreters...that everything's in sync here.

Go ahead for five minutes.

[Michael Cooper, Conservative, St. Albert—Sturgeon River, AB]

Thank you, Mr. Chair.

Thank you, Mr. Beber. I want to ask you some questions about carried interest payments that you alluded to earlier.

Mr. Carney's ethics disclosure indicates that he is entitled to carried interest payments, which are essentially future bonus pay from the Brookfield global transition fund I, which he helped set up. Mr. Carney also co-chaired the Brookfield global transition fund II, as well as the catalytic transition fund.

Is Mr. Carney entitled to carried interest payments with respect to those funds?

[Justin Beber]

No, he's not. The reason for that is that we were in the process of setting up those funds when Mr. Carney decided to leave Brookfield to pursue the Liberal leadership, and we had not yet instituted any allocation of carry from those funds. Those funds had not yet been raised.

When we talk about launching a fund, we're starting the marketing of that fund. They had not yet reached a conclusion, or even an initial closing of those funds. Therefore, we hadn't allocated any carry. Had he stayed with Brookfield, he certainly would have been entitled to some.

[Michael Cooper, Conservative, St. Albert—Sturgeon River, AB]

Thank you for that.

Of course, he is entitled to carried interest payments in respect of the first fund, Brookfield transition fund I. I want to confirm that this fund is registered in Bermuda.

[Justin Beber]

Yes, I believe that one is.

[Michael Cooper, Conservative, St. Albert—Sturgeon River, AB]

Is the Brookfield transition fund II also registered in Bermuda?

[Justin Beber]

I don't have that information at hand.

[Michael Cooper, Conservative, St. Albert—Sturgeon River, AB]

I would note a March 26, 2025, CBC News report that indicates that the Ontario business registry indicates that the “governing jurisdiction” for the Brookfield global transition fund I and the Brookfield global transition fund II is Bermuda.

I presume you're not disputing that.

[Justin Beber]

I won't dispute that.

[Michael Cooper, Conservative, St. Albert—Sturgeon River, AB]

I would also ask that you confirm that the catalytic transition fund is registered in the Cayman Islands.

[Justin Beber]

I can take that away and make sure that I'm not misspeaking on which jurisdiction it's part of.

[Michael Cooper, Conservative, St. Albert—Sturgeon River, AB]

I think you know the answer to that. It's yes.

I want to ask you a little bit about the schedule of payments with respect to carried interest from the Brookfield transition fund I. When does the fund mature?

[Justin Beber]

Transition fund I would have a maturity of 10 years plus a two-year possible extension, which would take it to 2032 to 2034, I believe.