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Barbados Sucked Into Canadian Political Scandal

by Mike Godfrey, Tax-News.com, London

09 April 2003

Barbados has found itself embroiled in a political row involving the man aspiring to be Canada's next Prime Minister, Paul Martin.

The furore has erupted as a result of Mr Martin's connection with shipping company Canada Steamship Lines, in which he had a controlling interest until 1995 when he handed the business over to his sons to avoid a conflict of interest with his job as Finance Minister.

According to a report in the Barbados Advocate this week, Martin's political opponents allege that he 'reflagged' many of his vessels from Liberia to Barbados in 1995 when a tax treaty with the former was discontinued, thus closing off a tax loophole.

However Mr Martin says that he has a tough stance on tax avoidance, and points to a campaign he led whilst in government that sought to close down international tax loopholes. He would be committed to doing so again if elected Prime Minister, he affirmed.

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