Finance committee  I don't know the answer. But my understanding, from discussion with people on the spirit of the law, is that the income being taxed in Barbados is income generated globally, not income that's generated in Canada.

Finance committee  I want to say thank you. You were more aggressive this time than last.

Finance committee  We could, and in many states in the United States there are elements of that. But let me just say one thing. I want to tie this back to the foreign takeover debate that we raised a few minutes ago. If a Canadian company was somehow disallowed from accessing the global economy usi

Finance committee  Given my understanding, I think that would hurt Canadian companies. The reason I say that is the following. The Canadian company will take the first dip, the interest deduction in Canada, and they will not take it in the second country, say, the U.K. What ends up happening is tha

Finance committee  I wish we had two hours to speak about this one topic. I think it's a very important question, and it's one I've discussed on many other occasions. Basically, what is it about Canada that prevents the Canadian managers from taking over those companies? There are many hypotheses

Finance committee  Actually, I would argue that many of the companies from these other jurisdictions, from Europe, from the United States, and from Asia, also have tax treaties with countries like Barbados and including Barbados. So many of these companies from these competing jurisdictions are not

Finance committee  I start by saying I'm not a tax expert, but having said that, my study and the underlying hypothesis of my study relates to taxation as it applies to Canadian business income generated globally. So everything I've said doesn't really apply to Canadian business income generated wi

Finance committee  Can I pick up on one thing? This idea that when Canadian companies generate income globally there is no tax paid on it is not quite accurate, because when a Canadian business repatriates that income to Canada you get a dividend cheque—you, as a Canadian. Employees get dividend ch

Finance committee  First of all, it's incorrect to refer to Barbados as a tax haven.

Finance committee  That's not my interpretation.

Finance committee  I'm not sure the last time you visited Barbados, or when you went to a Canadian multinational business there. I have gone to more than a few. I have talked to many employees. I've talked to many Canadian employees who have moved to Barbados and are active in accounting, legal ser

Finance committee  I understand the question and I'll answer. I'll start by answering that it's incorrect to call Barbados a tax haven. The OECD has taken Barbados off that list. If I'm going to answer a question, I want to answer a question that's correct.

Finance committee  It's an international financial centre, not a tax haven. That's point number one. Point number two, the example you described is not my understanding of what happens. Barbados provides many resources to Canadian companies that go through Barbados. It's not a hollow shell, as you

Finance committee  Yes.

Finance committee  I'm not sure why you're saying there's no tax obligation—