Okay.
The second point is that the OECD has consistently failed, over decades, to counter these problems effectively, and the best chance for progress now is at the United Nations. The OECD's two-pillar solution, which has already been mentioned, was initially presented as a breakthrough but has been weakened and delayed, largely due to the resistance of the United States and its dominance of the OECD. The United States now even threatens economic retaliation against countries implementing the remaining rules affecting U.S. multinationals.
Therefore, acceptance of the side-by-side arrangement would undermine the remainder of the global minimum tax by exempting U.S. multinationals, which are responsible for the largest share of the global profit shifting. Side-by-side is reminiscent of medieval emperors, who were above the law that they themselves had set for everybody else. The exempt beneficiaries include tech giants closely aligned with President Trump.
This pattern is not new. The OECD has long granted the United States special privileges. FATCA and the CRS are examples.
For these reasons, Canada should oppose the side-by-side deal. However, no single country can withstand the U.S. pressure. Therefore, the only viable route is collective defence of tax sovereignty at the United Nations, with the potential to establish a truly democratic and fair system of global tax governance. Meaningful Canadian engagement is essential to developing reforms that can withstand the pressure from the U.S. and its libertarian anti-tax ideologues. By working with countries such as Germany, Spain, Brazil, South Africa, India and many others, Canada can help champion a strong, progressive UN tax convention.
Finally, the third point is that Canada can take unilateral steps now to reduce illicit financial flows and to protect its revenue base. For example, Canada could extend its public beneficial ownership register to all companies, including those that are formed in any province or territory, and also extend it to trusts. Second, Canada could enact public country-by-country reporting to expose profit shifting and strengthen tax compliance. It is gaining global momentum as a tool for holding multinationals accountable. As has been mentioned before, the European Union and Australia have already legislated for it. It is a safe policy.
Thank you for your attention, and I'm very much looking forward to your questions.