Thank you for the question.
I think certainly the intergenerational transfer rules in Quebec as well as precedence in the United States and elsewhere have informed our thinking on the matter. It is, as I said, an important topic, sufficiently important, of course, to have made it into the Minister of Finance's mandate letter.
You'd asked about the specific concerns and had raised tax planning, and whether or not it could be dealt with later. I would simply note that the amendment, as provided in the bill, would facilitate more often high-net-worth individuals to extract or to pay out retained earnings from the corporation, possibly using the lifetime capital gains exemption to avoid or reduce taxes. Those could go from, to choose the Ontario rates we talked about earlier, 47% down to 26%, roughly, or down to zero where the lifetime capital gains exemption applies.
This kind of surplus stripping is very widespread, I would say, within the tax planning community. It's fairly common to try to convert dividends into lower taxed capital gains. It would seem reasonable to expect that to not only continue but to be accelerated and emboldened with the kind of planning that could be utilized through some of the measures in this bill.
You'd asked about what kinds of concerns there were on the tax avoidance side of things, and I think that's about it. I don't want to get into too many technical details. I alluded to them earlier. By using some tweaks on existing techniques, it is very possible, through a few transactions, to eventually....
Say, you're going to extract $100,000 from your business. You wanted that money out. You'd normally pay around $47,000 or $48,000 of tax on it. To have your child set up a corporation, transfer through—