Finance committee  Thank you. I would like to add quickly, Mr. Chair, concerning doctors who have had experience in Quebec, in which we gave [Inaudible—Editor] and it doesn't increase the number of doctors practising. We had to take other measures to do that. On the contrary, I don't think the change would decrease the availability of doctors.

Finance committee  On the point raised by the honourable member, the difference is that a small business owner or a bigger business owner who are incorporated would be able to compound that interest for a longer time, without paying taxes, than the retiree who has been a salaried worker for all his life.

Finance committee  It's important to point out.

Finance committee  Yes, I think it would be possible to do that. We need to avoid ambiguous scenarios where people would again try to directly or indirectly bypass the system. There would have to be guidelines, since the objective is to have a lower tax rate for businesses than for individuals. The entrepreneurs have to face risks that a salaried employee does not face.

Finance committee  Unfortunately, that is sometimes the case. There are reasons why corporate and personal taxation must be different. Businesses aren't up in the air somewhere, they belong to individuals who can be taxed. So there must be differences. That said, when the system encourages people to incorporate for taxation purposes and not for entrepreneurial purposes, the objective that was sought is not being attained.

Finance committee  As mentioned earlier, there is unfairness when similar situations are treated differently by the taxation system. The issues put forward by the government in this regard are relevant. Once again the point is not to jeopardize the competitiveness of companies, nor to prevent them from investing in subsequent development when it is very important that they do so.

Finance committee  Thank you very much Mr. Chair. I also thank the members of the committee for giving me the opportunity to speak with them and the other witnesses on this important review of tax planning through the use of private corporations. I am an economist and professor of economics at the Université du Québec in Montreal.