Thank you for the follow-up question.
Building upon what I noted earlier, the basic idea behind the exempt surplus system—which allows Canadian companies that have subsidiaries in a foreign jurisdiction with which we have a treaty to repatriate earnings tax-free—is largely competition.
As a simple example, if a Canadian company wants to expand into the United States—as is the most common situation, I think—it can set up a subsidiary in the United States. That subsidiary can earn active business income from competing with American companies and pay the same taxes as its competitors, which puts it on a level playing field. When those amounts are returned, those can be tax-free.
It's similar to what you see in a lot of other jurisdictions, including very recently the United States, which moved to a similar territorial system.
First, the—