Canada 'will not introduce' executive bonus tax

The Canadian finance minister has revealed that he has no plans to follow the example set by Britain and France in taxing the bonuses of banking executives.

Jim Flaherty has rejected international calls to implement a tax on the bonus structures of executives working in the country's financial institutions as they already follow guidelines on compensation.

The senior politician's comments follow the publication of a column in the Wall Street Journal written by British prime minister Gordon Brown and French president Nicolas Sarkozy, which called the levy a 'priority' because of international investment in the banking industry.

However, Mr Flaherty explained that Canadian bankers were not bailed out by the government or part-nationalised as a result of the recession.

He said: "We want to grow Canada as a financial centre; we don't want to impose punitive taxes on anybody."

Last month, the Canadian Securities Administrators revealed that it has abandoned plans to change the country's corporate governance landscape as surviving the economic downturn is more of a priority.