Mr. Speaker, for some time the Bloc Québécois has been seeking to limit and prohibit the use of tax havens.
As I previously explained in my presentation, some might say they are loopholes in the legislation. However, as I demonstrated earlier, they are not loopholes but are put there by design to enable people, certain wealthy individuals and companies, to avoid paying taxes.
I mentioned the case of an exchange of e-mails proving the intent. I will attempt to find it because it is very interesting. In 1994, an official of the Department of Finance told Craig Cowan, of Arthur Andersen, the following:
Be advised that proposed paragraph 5907(11.2) is intended to ensure that a Barbados international business corporation which is a foreign affiliate will remain eligible to earn an exempt surplus.
Obviously the government wanted a way around the legislation. It is not a loophole. It was designed that way.