No, this is not Les Invasions barbares , but it sure seems like it. The barbarian invasion might seem like an evasion in Barbados. There is an interesting play on the words barbarian invasion and evasion in Barbados.
This government endorsed it and on three occasions refused to believe it, despite the Auditor General's guidelines and statements. The rules of social solidarity must apply. If this is not a barbarian invasion, then it is certainly an evasion in Barbados or Bermuda.
What are tax havens? As my hon. colleague from Jonquière said, it is important to understand this.
We, in this House, have a mandate to educate. We are not indulging in demagogy, but simply trying to tell the public about the shell games some business people might be playing to erode Canada's tax base, which can only lead to a reduction in services being provided to the public.
Tax havens are nothing more than countries where the tax rate is low or nonexistent. Also, since there is total secrecy surrounding the financial sector in several of these countries, it is hard to put an exact figure on the amounts involved.
Back in 1998, the OECD set four criteria to identify tax havens. These include first, levying little or no income tax; second, refusing to exchange information concerning taxation; third, lack of transparency in their legislation; and fourth, lack of substantial activities. At the time, the OECD had identified 35 countries meeting these criteria.
Since the motion deals with tax treaties, it is important to define what they are. Let us take as an example the treaty Canada signed with Barbados.
Basically, the purpose of tax treaties, like the one Canada signed with Barbados, is to avoid double taxation. Barbados then becomes a very telling example, one that the former finance minister knows quite well. In fact, when I went over the organization chart of the Canada Steamship Lines and the assets of the hon. member for LaSalle—Émard, I identified close to 10 businesses that have set up their headquarters in one tax haven alone, Barbados.
Let us forget about all the other tax havens. He has ten businesses in Barbados alone.