Thank you, Mr. Chairperson.
Thank you, to you, Madam Fraser, and to all your staff for being here on a long-standing issue that as far as I can tell goes back at least 20 years.
In your 1992 report you referenced the fact that the Department of Finance had committed in 1987 to review this whole area of tax rules on interest deductibility. Here we are in 2007, 20 years later, wondering what we've ended up with.
As I read your 1992 report and your 2002 report, my understanding is that in fact you were concerned about the general issue of interest deductibility when it came to foreign affiliates. It wasn't strictly a matter of double-dipping, although that was part of the concern.
You said in your 2002 report that your concerns were in 1992, and still were, that:
When a Canadian corporation carries on business outside Canada to a foreign affiliate, the interest expense charged on the money borrowed to invest in the operations of the foreign affiliate can be deducted in Canada [...].
That was your concern then. Is that true? Was that your concern then, and is it still your concern?