Finance committee  If they do not go to Barbados, they could choose some other country with low tax rates. For fiscal reasons, when doing business abroad, it is good to choose a country with which we have a tax treaty. Without a tax treaty, dividends that come back to Canada are taxable. However,

Finance committee  No, a country would never go abroad to create an entity in a country with which we have no tax treaty, it would be committing fiscal suicide. We will deal with a country with which we have a tax treaty. However, the most recent budget provides that even without a tax treaty, we

Finance committee  When we give up taxing profits earned, particularly in Barbados, and we are talking about $800 million, there are no losses in Canada. That amount is not being taxed in Canada. Therefore, we cannot even talk about reduced revenues for Canada's Treasury. On the other hand, Canadi

Finance committee  In the United States, with Circular 230, that went into effect June 20, 2005, any taxpayer who wishes to set up an aggressive tax scheme with the assistance of accountants, lawyers or any other professionals, must submit the opinion letter issued by that professional with a descr

Finance committee  Previously, during the 1980s and up until the 1990s, countries that handed over dividends in Canada tax-free, and received by a parent company tax-free, were called designated countries. There is a list of countries, and if anyone of those countries paid up dividends in Canada, t

Finance committee  You are absolutely right. The Canadian tax system indeed allows openings mainly to Barbados. In the 2002 report, the Auditor General stated that $23 billion had been invested in Barbados. There is a reason for that. Barbados, in particular, has a tax agreement with Canada. Becaus

Finance committee  You are completely right. Tax fairness is about redistribution according to the needs of Canadian taxpayers. When we talk about the needs of Canadian taxpayers, we talk about health and education that fall under respective areas of jurisdiction; and of course, we talk about havin

Finance committee  Thank you and good morning. Canada has made a choice in its legislation. My comments will focus more on these legislative choices so that we can find solutions to solve the problems associated with tax havens. In order to tax a Canadian company, the notion of residence must be