A $5 billion investment fund established during Mark Carney’s tenure at Brookfield Asset Management was officially registered in the Cayman Islands tax haven, as per documentation obtained by Radio-Canada. This adds to two other funds totaling $25 billion registered in Bermuda, an additional offshore tax haven, when Carney served on the company’s board from 2020 to 2025.
Although these structures are legally compliant and adhere to international tax standards, critics question the use of tax havens by investment firms. Brookfield and its affiliates, however, assert their commitment to complying with tax regulations in Canada and other jurisdictions where they operate.
The Liberal Party deferred inquiries to Brookfield, emphasizing that Carney’s association with the firm ended in January 2025. Political opponents have raised concerns about Carney’s activities in the private sector, particularly regarding tax matters should the Liberal Party win the upcoming election.
Carney has defended the decision to register two Brookfield funds in Bermuda as a matter of efficiency rather than tax avoidance. The funds in question – the Brookfield Global Transition Fund ($15 billion) and the Brookfield Global Transition Fund II ($10 billion) – were launched in 2021 and 2024, respectively. Additionally, the Catalytic Transition Fund, a $5 billion fund focused on clean energy and transition assets in emerging markets, was registered in the Cayman Islands in 2024.
Tax expert Jean-Pierre Vidal explains that tax havens are utilized to reduce taxes paid in foreign countries, thereby allowing companies to pay more taxes domestically when profits are repatriated. While such jurisdictions can enhance company profitability, they have faced increased scrutiny in recent years.
Political opponents, particularly the Conservative Party, continue to question Carney’s financial activities, accusing him of benefiting from political connections to boost personal wealth. Carney, on the other hand, emphasizes adherence to ethical standards and anti-conflict measures to prevent any influence on Brookfield.
The NDP leader has pledged to eliminate tax agreements with jurisdictions like Bermuda, citing substantial revenue losses due to tax avoidance. Similarly, the Bloc Québécois leader has called for transparency regarding Carney’s foreign assets, criticizing perceived inequalities in the tax system.
Overall, the use of tax havens by firms like Brookfield raises ongoing debates about tax practices in the corporate world and the responsibilities of individuals with political affiliations.