A billion in loans from the federal government for a company in tax havens

Archival Photo Pierre-Paul Poulin
A representative of Turquoise Hill Resources has ensured that the financial set-up of the company has been approved by the Canada revenue Agency and that it complies with the canadian laws.

QMI agency

Monday, February 5, 2018 18:09

UPDATE
Monday, February 5, 2018 18:12

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VANCOUVER | Turquoise Hill Resources, a mineral exploration company canadian based in Vancouver, would have received approximately $ 1 billion in loans from the federal government so that it would engage in tax avoidance in tax havens.

According to the Toronto Star, the company received 750 million US $ (about 1 billion CAN$) in the year 2015 of the proportion of Export development Canada, a Crown corporation called to finance canadian companies.

However, according to the daily, which is based on data from the firm’s Dutch NGO SOMO, Turquoise Hill has managed to avoid 559 million US $ (about $ 700 million CDN) in taxes between 2010 and 2016 in connection with a mining project in Mongolia.

According to SOMO, the company would have reported US $ 2.1 billion in profits in Luxembourg, where it employs only one part-time employee. Turquoise Hill has paid $ 89 million in taxes on its profits, since Luxembourg has a tax rate of only 4.2 %.

A company representative assured the daily toronto that the financial set-up of Turquoise Hill, has been approved by the Canada revenue Agency (CRA) and that it complies with the canadian laws.

For its part, EDC has indicated to the Star that it is based on the ARC to determine if it can lend to a company.