Canadian prime minister Mark Carney remains embroiled in a spicy political drama over his use of Bermuda corporate entities in his pre-political life, as he now takes Canada to the polls.

Facing a barrage of questions from reporters during a political campaign stop near the Detroit border in Windsor, Ontario, he responded that funds through his former employer, Brookfield, were registered in Bermuda to avoid double taxation.

The funds were geared towards investments in green energy and infrastructure, holding combined assets of $25 billion, The National Post reported.

Mr Carney responded: “The important thing… is that the flow through of the funds go to Canadian entities who then pay the taxes appropriately. As opposed to taxes being paid multiple times before they get there.”

Radio Canada and CBC News reported last week that Mr Carney had used Brookfield funds domiciled in Bermuda to attract investors.

Political observers, while conceding no illegality, criticised Mr Carney for hiding his corporate assets in Bermuda to dodge the taxes that Liberals force on Canadians.

But Mr Carney said on Wednesday that the funds served the interests of millions of Canadian workers.

“The structure of these funds is designed to benefit the Canadian pension funds that invest in them,” he said.

“The beneficiaries of those funds, teachers, retirees, municipal employees, they pay the taxes on their pension. That’s the design.”

The Canadian Press on Friday quoted Daniel Tsai, business and law professor at Toronto Metropolitan University, that the structure of global funds set up by gigantic asset managers such as Brookfield were “complex”.

Whether the funds in question were set up in Bermuda specifically to avoid paying tax in other jurisdictions was a question for Brookfield itself, he said.

Funds are often set up to take advantage of bilateral agreements and treaties.

Tax credits can exist between jurisdictions to avoid double taxation, which may happen when income moving among a global company’s subsidiaries in different domiciles is taxed at multiple points before reaching its final destination.

Brookfield Asset Management is linked to the companies involved in the massive transformation unfolding between Front and Reid Streets, with the construction of a nine-storey building, Brookfield Place, which will be a pivotal hub for many of the company’s global operations.

The strategic area from 91 Front Street to Reid Street along Chancery Lane, will serve as the global headquarters for Brookfield Reinsurance and all of Brookfield’s Bermuda-domiciled listed affiliates – Brookfield Property, Brookfield Infrastructure, Brookfield Renewable and Brookfield Business Partners.

The ultimate parent, Brookfield Corporation is a Canadian multinational, a premier alternative investment company with assets of more than $725 billion.

The company has interests in real estate, renewable energy, infrastructure and private equity, making strategic investments across its three core pillars of asset management, insurance solutions and operating businesses.