Madam Speaker, we believe that it is quite important that we have a tax system that is fair, efficient, and less complex than it is at present. That is why we looked at the system and made some important observations in this budget and also some plans for what we can continue to do.
We are working on dealing with tax expenditures that benefit a small proportion of Canadians at the expense of all others. The area where we believe there is the biggest opportunity is in some of the planning mechanisms that go on within private corporations. We saw that some people are actually turning regular income into capital gains income. We saw that some people are putting in passive income and are gaining advantage through that approach within a corporation. We saw that some people are sprinkling dividends among family members, which was not originally intended.
These private corporations have increased dramatically in number in our country, and we know that this is important to look at. We will be releasing a consultation paper in the near future to talk about how we might be able to address this, which will help us ensure that our tax system is fair for all Canadians.