Certainly, if you don't mind, and if that's okay with our colleagues.
Other than myself, Mr. Boulerice, and Mr. Dusseault, I'm the only member of Parliament at the table who was actually here when these debates were happening in the last Parliament. I'm not going to ask political questions in my capacity as chair. I'm going to be as neutral as I can, but if you'll allow me....
Madam Minister, in my recollection, the change came about with the change in the U.S. government's administration and with their legislative compliance with their legislation that we came into an agreement with. We've had a long-standing tax treaty with the United States government, but it was about four or five years ago that they started to actively enforce their tax policy, whereas earlier they didn't actively enforce their tax policy.
The tax policy is that the United States of America taxes citizenship and not residency, which is a difference between Canadian tax policy and the United States tax policy. Would you agree with my assessment?
In coming to compliance, the Canadian government of the day had to enter into an agreement, as you've aptly pointed out, in order to protect Canadians; otherwise, the banking institutions or financial institutions in Canada would be directly dealing with the U.S. government. There would be no government intervention to provide that bottleneck for the purposes of protecting Canadians' information, had the Canada Revenue Agency not stepped in.
While you and I may disagree on whether or not the process was done in a way that it should have been done, we both agree at this table that the result that was needed was actually accomplished because the current government seems to be okay with the legislation and the changes that were made by the previous government.
I'm not here to debate that with you, but during the debates in the House of Commons in the past Parliament, I remember that one of the arguments put forward was that Canada fared very well in its agreement to come into compliance with the American change in policy compared to how other countries did in their negotiations with the United States.
I would just like some clarification from you, Madam Minister. Do you think that still holds true?