Mr. Koeller, I want to make sure I understand this rule. I obviously have sympathy for any small business organizations that are providing mortgages and providing income to individuals.
Corporations typically pay tax, and then there is a tax on the dividends that are paid out to shareholders. MICs operate differently. They don't pay any corporate-level tax. The profits are flowed through to the shareholders, and they pay taxes as described.
MICs are subject to only one level of tax, but the problem here that the Department of Finance has identified is that some individuals were exploiting the rules by putting the whole MIC in their RRSP or their RRIF. One of the things you said in your response to Ms. McLeod was “invest in our company”. That's the issue. People are using the very generous tax deduction for Canadians with respect to their RRSP, but it's not to invest in companies; it's to save for retirement. That is what the problem is here. I'm still unclear as to how your proposal actually addresses that problem.