Bronfman response satisfies PM, not critics

HANOI, VIETNAM •Prime Minister Justin Trudeau said Wednesday he’s satisfied with the public explanation provided by a top Liberal fundraiser whose name surfaced in leaked documents that provide details on legal, offshore tax havens used by the wealthy.

Trudeau’s Conservative and NDP rivals, however, are decidedly less so.

Trudeau, who is in Vietnam for this week’s APEC meeting, said he has accepted Stephen Bronfman’s response to the so-called “Paradise Papers” that he has never funded nor used offshore trusts, and that all his Canadian trusts have paid all federal taxes on their income.

However, when asked why his close personal friend appeared to still be in his role as a key Liberal fundraiser, the prime minister did not directly answer, nor would he speak Bronfman’s name.

“We have received assurances that all rules were followed, indeed the same assurances made in the public statement released by the family, and we are satisfied with those assurances,” Trudeau told a news conference inside Vietnam’s presidential palace.

“You can rest assured that Canada Revenue Agency will take very seriously its responsibility to go after everyone and anyone involved in tax avoidance and tax evasion.”

Tax avoidance measures involving offshore trusts are legal, provided that the trust is genuinely managed offshore and that Canadian taxes are paid on any Canadian contributions. Still, the questions about Bronfman have given the Liberal government’s political foes fresh ammunition to accuse Trudeau of leading an ethically challenged government, and they renewed their attacks Wednesday.

Conservative leader Andrew Scheer called it “unbelievable” that Trudeau would give Bronfman a clean bill of health so soon after the Canada Revenue Agency had promised to delve more deeply into the murky world of offshore tax havens.

“What kind of message does that send to the Canada Revenue Agency and the people that will be reviewing the file? What kind of message does that send to Canadians?” Scheer asked.

NDP leader Jagmeet Singh called for more investigation, saying it’s critical to understand what happened and why Canada’s laws allow the super-rich to avoid paying taxes.

“The prime minister says that he is satisfied with the explanation provided by Mr. Bronfman,” Singh said. “The reality is Canadians are not satisfied. Canadians expect a just and fair taxation system … that ensures the wealthy, the well-connected, the powerful also contribute their fair share.”

Bronfman said he made a single loan to the trust on an arm’s-length, fully commercial basis some 25 years ago that was repaid five months later, a transaction that was fully in compliance with Canadian law

Stephen Bronfman