Thank you, Chair.
The Liberal amendments to clause 5 have some serious ramifications. They would delete amendments relating to foreign affiliate dumping, particularly those that allow an elective income inclusion rather than a deemed dividend. The foreign affiliate dumping measure responds to avoidance transactions that seek to erode the Canadian tax base and to extract amounts from Canada, without paying appropriate tax. The elective income inclusion is a relieving measure developed after consultations with stakeholders.
These motions—specifically 12, 13, and 14—would delay by 15 months, until July 1, 2013, the implementation of amendments related to foreign affiliate dumping. This is an anti-avoidance measure. This is the third amendment. We're talking about tax loopholes. This is the third amendment that would protect tax loopholes. So delaying its implementation would provide an opportunity for taxpayers and their advisers to undertake inappropriate transactions in the interim, and this would subsequently have fiscal implications.
We will not be supporting these amendments.