Thank you.
You ask me how we can solve the problem of tax havens, and this is an enormous issue. I've spent several years trying to answer that very same question. I should like first to clarify one point:: when we are asked to solve a problem, we are not asked to solve the consequences of that problem. In dealing with the problem of tax havens, the Canadian government often makes the mistake of focusing solely on the consequences of tax havens. By dealing with a tax agreement of which Canada is signatory, or any of the tax laws you are referring to, we always deal with the consequences of the problem. Therefore, even if we were to find the perfect answer, the problem of tax havens would continue to exist. Since you are asking me to make suggestions on how to solve the problem, I assume that you are prepared to think in broad terms and that you want to solve the problem, rather than its consequences.
In attempting to find solutions to the problem of tax havens, I try to picture the situation. It is akin to a spectator who stands up alone in the middle of a seated crowd. And then, on his own he decides to watch the show standing up. Similarly, tax havens like this standing spectator, take advantage of the situation. In fact, other countries, including Canada remain seated. If we were to decide to imitate the spectator and all of us watch the show standing up, the spectator like the tax havens would lose their marginal advantage. They would therefore lose all of their benefits.
Regardless of how we complicate the situation, we always come back to two distinct possibilities: we can either ask tax havens to take a seat, or ask countries, such as Canada, for instance to be the victims of the situation, and accordingly ask taxpayers to allow this injustice to continue. In talking about tax havens, it is mostly a matter of intuition. In Canada, tax history dates back only 60 years. In terms of the global tax experience, tax havens are a relatively new problem. My impression is that if we were to ask other countries and Canadian taxpayers to keep on supporting the tax unfairness and injustice cause by tax havens, we might challenge them.
If some of you are skeptical and believe that the taxpayer is a passive being, incapable of rebelling, but capable of enduring this kind of injustice for long, I will remind you that America resulted from the Boston Tea Party. If I may say so, there are plenty of taxpayers who are simply fed up.
If we want to solve the problem of tax havens, there is only one choice: that is to ask those countries to follow the same rules as other countries, and sit down. One things is certain: we will not reach that goal overnight. We must deal with this issue internationally. In the context of globalization, there are organizations that deal with a vast array of issues, including health, labour standards, and so on. However, since the advent of globalization, there is not a single world organization that is dedicated exclusively to tax matters. The OECD is not what I am alluding to now.
To my mind, this is the only way to establish a consultation table that would bring together all countries that are being treated unjustly because of tax havens. Together, we can talk about real issues loud and clear in an effort to convince the representatives of tax havens to sit with us so we can view together the show that is unfolding on the international stage.
Thank you.