I think the question generally suggests the correct answer. With respect to the U.S. and Japan, and I'd add the U.K., which are probably the three largest countries that have a system whereby on foreign earnings--and we're talking all within the multinational group, not individual investors, but one corporation in one country investing in a subsidiary in another country--the dividends paid from the subsidiary to the head office in the U.K. or the U.S. or Japan are all subject to tax when remitted to head office or home office under those tax regimes.
Canada's system for the past 35 years has been actually to not tax or impose any sort of Canadian ownership charge on earnings remitted to Canadian owners, Canadian companies, from their foreign affiliates where it comes out of active business income and where it happens to be a country with which we have a tax treaty. That reflects our objective of having a competitive tax regime with respect to international income.
So the budget proposal that would restrict interest deductions claimed in Canada against investments in foreign affiliates reflects the prior decision, affirmed in this budget, to exempt foreign income of this type from Canadian tax. The income is exempt for competitiveness reasons. Following from that, with the exemption for the income, the expenses associated with it are not to be recognized for Canadian tax purposes.