Thank you, Madam Chair.
Mr. Meinzer, subsection 5907(11.2) of the income tax regulations provides a tax exemption for income that is repatriated from zero or low-tax jurisdictions, provided that an agreement for the exchange of information is in place, even where no active business is carried on in those jurisdictions. Essentially, a corporation is exempt from tax if it is honest enough to tell us that it is swindling us. That is what I understand.
Could you tell me why provisions like these exist when your organization has estimated the revenue shortfall associated with the tax gap for Canada to be $8 billion or $9 billion dollars per year? Why would we not simply repeal that provision?
I see Professor Loomer smiling, so I will let him answer my question as well.