Some Canadian companies have used Luxembourg as a “tax haven,” over the past decade to avoid paying domestic taxes on billions of dollars in profits, a Quebec research institute says.
A recently published paper by Montreal-based IRIS found that 59 Canadian companies—33 of which were headquartered in Quebec—transferred $119.8 billion in net profits to Luxembourg between 2011 and 2021 to take advantage of its low tax rate. During the 10-year period studied, transferring of profits rose an average of 20 percent annually.
