So in effect the interest to be deducted against a Canadian company is allowed, encouraged in fact, to reduce its Canadian tax obligations domestically, to take the capital and move it to other jurisdictions where it would be subsequently invested as the company would see fit, and that is in essence the reality that has existed for a number of years. Despite recommendations in the report to the previous government, nothing has been done to change that reality.
Now the argument is being made that by forcing Canadian-domiciled corporations to pay this tax they would be made uncompetitive, and therefore--the phrase was used by Mr. Thibault--the economic activities of this country would be hollowed out.
Do you have any facts to present to this committee that would give evidence to the truth of that statement?