The voluntary disclosure program is a good program, although it can be improved in some ways. I am pleased that the federal and provincial governments are doing something along these lines.
To go even further down the road of detaxing Canadian multinationals, I will say this. Right now, there is a global movement because there are a number of problems. I think the OECD is doing quite an amazing job with its BEPS project. Some aspects need to be improved, but, overall, taxing revenue at its source is a great idea. Setting up the system is going well.
Whether in Canada or abroad, the shortcoming is that we are not addressing the race to the bottom issue. We seem to think that countries will act differently from what economic theory teaches us. The theory is that, when we are in the ideal competitive position, we can make decisions that do not benefit us overall.
Tax rates in Canada are still adequate for multinationals as well as small and medium-sized businesses. We are not like Ireland where the rate is 12% or the U.S. where the rate is 35%. In Canada, tax rates are adequate and our way of doing things seems to work. In fact, tax rates have been significantly reduced in the past 10 years.
What country will lead the race to the bottom in tax rates next? Our position might be less favourable then. Canada needs to address this problem.