What you need to know about offshore dealings

A Canadian Press Q&A on the Panama Papers data leak quotes UBC law professor David Duff. According to Duff, while offshore companies can be used for business finance and estate planning, the question is whether offshore companies of Canadian firms pay Canadian taxes on passive income earned.

Some of these offshore companies could also be involved in money laundering. “There’s a lot of criminal activity and money laundering that flourishes in the shadows of the international financial system and tax systems,” Duff said.

This story appeared on Yahoo and Canadian Business.