Thank you, Mr. Chair.
I had started discussing artificial losses using equity-based financial instruments.
This measure relates to tightening up and improving upon gaps or uncertainties in the currently existing synthetic equity arrangement and security lending agreement rules that had been used by taxpayers to, in essence, create artificial losses by deducting the same expense twice, the same amount twice—primarily financial institutions.
These measures improve upon those rules in order to prevent inappropriate tax planning that can lead to the generation of artificial losses by financial institutions. Those are found in clauses 10 and 27 of the bill.