Mr. Speaker, the reason we enter into tax treaties, whether with higher tax jurisdictions or lower tax jurisdictions, is to ensure a framework for tax fairness so that people are not facing double taxation and to ensure there is a proper reporting structure to address possible issues of tax avoidance.
To the member's point, there is a principle here such that, regardless of the agreement, taxes should be paid in the jurisdiction where, in some sense, the work is being done. If there is a case, for instance, where all of the operational aspects are in one place but none of the taxes are being paid there, that is obviously an issue to discuss and to explore how we can respond to it.
I will also point out for the member that when other jurisdictions have lower taxes, companies can relocate to those jurisdictions if they wish to. It is not possible to, say, prohibit a company from moving its headquarters somewhere else. In fact, under the previous government, companies from the United States chose to move their headquarters to Canada. However, they would have had to bring aspects of their operations to Canada associated with that as well. When we are a low-tax jurisdiction, that can work to our advantage as well.