Madam Speaker, without receiving the details of the transaction and being able to actually analyze what is occurring, it is extraordinarily difficult for one to give an opinion on the process that is being alleged by the hon. member.
Clearly our Canadian tax laws have been designed to minimize the possibilities of individuals defeating the system. The process of treaties is really just a process that builds upon the Canadian tax law and allows its application to be part of the international community that tries to achieve equity and fairness in the taxation of Canadian taxpayers as individuals and also as corporate entities.
With regard to the rules that the hon. member talks of, I am certain that if one examines those rules, in many cases we are permitted to have certain corporate deductions within this country, but in fact when that corporation does declare its world income, it is expected to include a full and complete declaration of all its world income. In the way that we have set up our tax system it should capture all the appropriate income for taxation within this country.