Layton Challenges Xstrata: Company Making Profits While Avoiding Taxes
February 15th, 2011 - 7:11pm
NDP Leader Jack Layton says Xstrata is using taxation loopholes to report losses on paper when, in fact, they are making record profits. Layton challenged the Conservative government to show how Canadians have benefitted from Xstrata's corporate behaviour.
“Mr. Speaker, yesterday it was Vale, US Steel, Potash, Alcan … tomorrow it could be the TSX. But today it’s Xstrata taking Canadian taxpayers and workers to the cleaners. Xstrata’s profit on nickel was half a billion dollars. Yet they turned that massive profit into a paper loss. No income tax paid in Canada, and no nickel bonus to its Canadian workers. Taxpayers are subsidizing this company, while workers pay the price. How is that a net benefit?”
Timmins-James Bay MP Charlie Angus says Xstrata continues to show its true colors.
"This is a slap in the face to the people of the north. After shutting down the Timmins Smelter last year, Xstrata continues to make money while avoiding tax. Northern families pay their share of tax. Why is Xstrata so special?"
Angus says this is another example of how a weak Investment Canada Act hurts Canadian workers and their families.
“Xstrata profits have surged over the last year – and when it comes to paying those who pulled the profits out of the ground, they’re always crying poor? Does the Harper government support this type of behaviour from foreign companies?”