Canada won't impose surtax on banks

Finance minister says Ottawa has no intention of following U.S., British lead

Even as the U.S. and Britain entertain thoughts of boosting flagging government revenues with a special tax on banks, Canada has ruled out the possibility of implementing a similar fee. We are not about to impose new taxes on financial institutions in this country,” Finance Minister Jim Flaherty flatly told reporters. Though Flaherty expects the issue to come up during an upcoming G7 meeting in Iqaliut, he said Ottawa’s relationship with its banks is vastly different than that of the U.S. and British governments. “We are not about to impose limits or terms on executive compensation in the financial institutions in Canada, for a very simple reason,” he said. “Canadians did not have to put taxpayers’ money into our financial institutions. We did not have to bail them out.” The meeting of the world’s most powerful economies is expected to focus on the looming post-recession recovery.

The Globe and Mail