Carney's green funds at Brookfield used Bermuda tax haven to attract investors

In his time at Brookfield Asset Management, Liberal Leader Mark Carney personally co-chaired two investment funds dedicated to the transition to a net-zero carbon economy, worth a total of $25 billion.

Those funds were registered in Bermuda, among other locations, allowing investors to benefit from significant tax advantages, according to information obtained by Radio-Canada.

The funds created while Carney was on Brookfield's board of directors are the Brookfield Global Transition Fund ($15 billion) and the Brookfield Global Transition Fund II ($10 billion), launched in 2021 and 2024 respectively.

According to the Ontario Business Registry, the funds were registered in Bermuda under the names of BGTF Bermuda GP Ltd. and BGTF II Bermuda GP Ltd.

In both cases, the provincial registry indicates that the "governing jurisdiction" for the corporations is located in Bermuda.

Tax havens widely used

The legal structure of the Brookfield funds is complex and includes many jurisdictions. However, experts say their registration in Bermuda raises questions about Carney's approach to fiscal policy in Canada.

"All sorts of companies are doing this … but [Brookfield] are one of the biggest users of this kind of scheme," said Silas Xuereb, policy analyst with the group Canadians for Tax Fairness.

He says he hopes the next federal government will impose new limits on the use of tax havens, in particular by ending bilateral agreements with countries like Bermuda and strengthening international treaties to curb tax evasion.

Xuereb said it may seem "ironic" that environmental funds were registered in a tax haven.

But he said Carney was understandably motivated by profit in the private sector, and hopes that the Liberal leader "will have very different goals now that he is in political power."

On Wednesday afternoon, Conservative Leader Pierre Poilievre said "[Carney's] company, under his watch, put money in Bermuda to avoid paying taxes. All while Liberals force Canadians to pay higher taxes, Mark Carney dodges the bill himself. He thinks millionaires like him shouldn't have to pay."

Poilievre also said after U.S. President Donald Trump began threatening Canada's economy, he sold his own investments in "foreign economies."

NDP Leader Jagmeet Singh criticized Carney and said the Liberal leader "chose to register [the funds] in another country to avoid paying those taxes. That's less money for health care. Less money for seniors. That's less investments in our country."

According to press releases issued by Brookfield at the time, BGTF and BGTF II were "co-headed" by Carney. The other manager of the funds was Connor Teskey, CEO of Brookfield Renewable Power.

During a news conference in Windsor, Ont., on Wednesday morning, Carney said the "structure of these funds is designed to benefit the Canadian pension funds that invest in them," citing the Caisse de dépôt et placement du Québec and the Ontario Teachers' Pension Plan.

"I understand how the world works and how these structures work," Carney said.

The taxes are paid in Canada, Carney added, because the "flow through of the funds go to Canadian entities who pay the taxes appropriately, as opposed to taxes being paid multiple times before they get there."

A spokesperson for the Liberal Party refused to answer questions about Carney's activities at Brookfield or whether he had assets in tax havens before they were placed in a blind trust.

"Mr. Carney worked for Brookfield from August 2020 to January 2025, and has not been involved with the firm since. Any questions specifically related to Brookfield should be sent to the firm," said the spokesperson, Mohammad Hussain.

In a statement in 2024, Carney said that "the Brookfield Global Transition Fund strategy is aiming to deliver strong risk-adjusted financial returns for investors and make meaningful environmental impacts for people and the planet."

Located in the middle of the Atlantic Ocean, Bermuda ranks among the largest tax havens in the world. Investments from Canada to the country have increased from $10 billion in 2011 to more than $130 billion in 2023.

The issue of tax havens often raises passions in federal politics. Former prime minister Paul Martin was notably targeted by the Conservatives over his shipping company's use of tax havens.

In a report published in 2023, the Center for International Corporate Tax Accountability and Research criticized Brookfield's tax policies, including the use of entities in Bermuda.

The firm responded that it complied with all tax rules, explaining that the company manages large infrastructure companies that pay their taxes in the jurisdiction where they are located.

"We would also note that jurisdictions around the world have substantially different corporate tax rates and offer important tax incentives for investment, for example in sectors such as renewable energy in which Brookfield is a recognized global leader," the firm said.

In a press release earlier this month, the NDP stated that Brookfield's use of tax havens has led to the loss of billions in corporate taxes.

In a statement, NDP MP Niki Ashton called on Carney "to come clean on his role in Brookfield's exploitative practices to dodge paying their taxes in Canada while working Canadians pay theirs."