Thank you very much.
I think the reason for this is the widespread belief that lowering taxes would, in the end, increase economic activity and attract greenfield investment—the kinds of things that everybody wants, like new factories, new research and new jobs.
However, what we see in the data over the last decades is that what you achieve by lowering your taxes and exempting, for example, foreign dividends as part of that policy is that you attract, at best, profit-shifting activities, which is phantom investment. The IMF is calling “phantom investment” a good share of the global FDI data that is not made up of what we usually believe is the greenfield investment, but it's mergers and acquisitions or it's loaded onto companies, which will then reduce the tax base and therefore erode the tax revenues.
What I think is a policy to attract investment has been followed by Germany, for example. They also exempt the foreign dividends when repatriated. I think you should switch this to a credit system that is a simple policy. Many countries have this in place. It's safe. It still ensures that you are not double-taxing any multinational activity, whether it's abroad or domestic, so you treat equally the economic activity whether it's here or elsewhere. I also think switching from dividend exemption, even if subject to certain conditions, like a treaty or something in place—