What surprises me in what I am hearing is how much this bill's problems are reduced to technical issues, while today, tax avoidance is largely related to those double taxation agreements. If we recognize that the double taxation agreements are actually double non-taxation agreements—as those agreements help individuals invest capital in subsidiaries located in tax havens and repatriate them to Canada without paying taxes—we see that those agreements play a part in the phenomenon of tax leakage.
Why are Canadians now “investing” some $53 billion in Barbados annually? It is because we have a double taxation agreement that allows Canadians, under the guise of investment, to play a game of circumvention and repatriate the capital. We are well aware that, if someone invests capital in Barbados, they do so strictly to take advantage of the legislation in terms of tax-related regulatory benefits. That is exactly what will happen with countries like Hong Kong. Under the pretext of investing in Hong Kong, people will act like they are paying taxes there, when, if any taxes are paid, they will be minimal. People who invest in Hong Kong often do so to benefit from the low tax rate and the pressure put on wages in those countries. That's outsourcing, which costs us a great deal politically, socially and economically. Since company outsourcing can be explained by this phenomenon....