Mr. Speaker, I want to be perfectly clear. We are not against tax treaties. We are against the tax convention between Canada and Barbados, because that country is a tax haven. The question that I am asking myself, among others, is why is Canada one of seven countries that have signed a convention with Barbados. There are some 30 countries that belong to the OECD; the others did not see fit to sign a convention with Barbados. Therefore, we are among those that are the exception.
We are talking here about avoiding double taxation, and I totally agree with that. However, if we look at capital gains, for example, they are not taxable in Barbados, but they are in Canada. The Auditor General in her 2001 report stated:
Canada usually signs tax treaties to avoid double taxation. Barbados does not tax capital gains. However, the Agreement allows a resident of Barbados to claim a Canadian tax exemption on a capital gain that would otherwise be subject to Canadian tax.
My question for the member is, was the Auditor General making frivolous statements when she warned the government about these practices in 2001?