Thank you very much, Mr. Chair.
Thank you to all of the witnesses for their very interesting testimony.
My first question is for you, Mr. Booth.
I read with great interest the brief that was circulated to committee members. I'm not a tax expert by any means, so I'm looking for you to enlighten us on some of your recommendations.
I am a lawyer, however, and I was interested in the third option proposed, albeit in the alternative, with respect to an IP retention threshold for SR and ED. I note you propose that the capital threshold be replaced with a type of IP retention threshold that would grant enhanced SR and ED credits in proportion to the amount of IP held by a firm in Canada relative to the IP it holds in the rest of the world.
You can correct me if I'm wrong, but I believe that many companies, such as your own, that are deep into R and D are export intense. A lot of your clients would be around the world. In that case, you would need IP in the countries to which you export.
How would that particular proposal work for companies that are exporting internationally?