His fortune has been estimated by Forbes Magazine at between $4.1 billion and $8.3 billion over the last decade. Irving Ltd.'s forestry and paper operations, New Brunswick's largest private sector employer. The Irving family is among Canada's wealthiest. Many of the records in the leak, known as the Paradise Papers, come from Appleby, which was founded in Bermuda.į.M.A.’s existence was unknown until the Paradise Papers leak, which included these financial statements. is one of several previously unknown Irving companies in Bermuda revealed in documents leaked to German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists and CBC and Radio-Canada. Irving 'captive insurance' company revealed in leakį.M.A. Canadian tax authorities wouldn't have allowed them overwise, she said. McInerney said all insurance sales between F.M.A. In 2020, Reuters News reported that several large global oil companies, including Shell, BP and Chevron, used offshore captive insurance firms and banks to lower their tax bills. It's income to the Bermuda insurance company. "The premiums that they're paying … that's a deductible expense, usually. "It's an easy way for a Canadian-based multinational to save some Canadian tax," he said. Geoffrey Loomer, a professor of tax law at the University of Victoria Law School in British Columbia, says it's not surprising the Irving family set up a captive insurance firm. "A captive insurance company was then and continues to be a good business approach to reduce insurance costs and ensure the best possible insurance coverage," she said. still considers captive insurance to be a useful strategy. The company turned down an interview request and McInerney did not specify in her email whether a new company was set up to replace F.M.A., but suggested J.D. "has not been active for at least 10 years." It's an easy way for a Canadian-based multinational to save some Canadian tax. vice-president of communications, said in an emailed statement that F.M.A. insurance customers other than Irving companies.Īnne McInerney, the J.D. The leaked documents, which come from Appleby, identify no F.M.A. It had no office: its Bermuda address was that of Appleby, an offshore services law firm used by the Irvings. Ltd., an Irving-owned insurance company in Bermuda. was what is known as a "captive insurance" company, an insurer with the same owner as the insured company or assets, allowing that owner to benefit from the insurance profits. "Under current Bermuda law, the Company is not obligated to pay any taxes in Bermuda on either income or capital gains," says a note that appeared in F.M.A.'s annual financial statements between 19.į.M.A. Irving created in Bermuda over several decades. The company's records provide a rare glimpse into a topic that has intrigued New Brunswickers for years: the complex multibillion-dollar financial apparatus - including a $3 billion tax-free trust - that corporate patriarch K.C. That allowed F.M.A. to accumulate almost $13.4 million in untaxed income between 1973, when it was incorporated, and 2001, the last year for which CBC News and Radio-Canada have financial statements. then reinsured major risks to those vessels by paying lower premiums to a non-Irving reinsurance company based in Bermuda. Ltd., sold insurance premiums to Irving companies in Canada and Bermuda for their marine vessels.į.M.A. The Irving-owned Bermuda insurance company, F.M.A. New Brunswick's billionaire Irving family created an offshore insurance company that allowed them to move millions of dollars in profits out of Canada and into the tax haven of Bermuda, according to leaked documents reviewed by CBC News and Radio-Canada. Irving, honoured with a statue facing his former home in Saint John, incorporated a series of offshore holding companies in Bermuda, including F.M.A.
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