We're dealing with the issue of international tax avoidance and the usage of tax havens. This is a very tough problem. As I mentioned, the Canadian tax laws have a multitude of provisions that subsidize, effectively, international income. We don't give a break normally to the domestic income generated by our multinationals, but we do not tax the profits of the active business of our multinationals earned abroad.
I agree with the OECD and the G-20 that the best course would be enhanced cooperation and then some kind of worldwide agreement on more restrictions on domestic tax laws that permit these subsidies. The OECD tried this in 1998 through its harmful tax competition project, later renamed the harmful tax practices project. I think they made a lot of progress there. But the business lobby is very powerful. They will not like any reform efforts that cut down on their ability to use these very favourable tax provisions on the argument that they need it to compete on a global basis.
So you've got your work cut out for you.