Finance committee  I apologize, Mr. Chairman, but I'm not sure I followed Mr. McKay's question.

Finance committee  To try to be helpful, is it a discussion of the benefits of the Canada-U.S. tax treaty and the elimination of withholding tax on interest? Or is it the interest deductibility proposals, or is it some interaction of the two?

Finance committee  Well, I'm not certain if I follow that. The elimination of withholding tax under the Canada-U.S. treaty will be of benefit to both countries, and enhancing the ability to—

Finance committee  I believe, from the U.S. perspective, that they were, in fact, supportive of eliminating withholding tax on interest because of the benefits it would provide their investors, as it would, conversely, ours. An incidental effect of that is that it would actually have allowed Canadi

Finance committee  If I understand the question correctly, it's a reference to the fact that individuals are entitled to a dividend tax credit on dividends they receive from Canadian companies, whether or not the dividends have been subject to Canadian tax. That issue can arise in a purely domest

Finance committee  All I can tell you is that the dividend tax credit is not set up to be based on the actual amount of underlying Canadian tax paid. It's set at a level that we hope will recognize the maximum amount of corporate tax paid.

Finance committee  It's probably a regret for our society that we have some very bright people employed in such things as tax planning, but we do have them, and they are very inventive. There will be issues that will take place or new structures identified in the next few years that will have to

Finance committee  That's a regime we're trying to install and enhance to make everything you said true, and truer all the time.

Finance committee  Thank you. I tried to speak to this earlier. A little of what you hear now will reprise that earlier point. That kind of analysis would be valid if you take as a given that the Canadian tax deduction is fixed and the second deduction is the extra deduction. But if you've set up

Finance committee  Well, this last budget noted that actions included in that budget, and perhaps in combination with 2006's--I've frankly forgotten, I'm sorry--will move us from the third-highest tax rate in the G-7 to the third lowest. And with other possible changes, including movement at the pr

Finance committee  I wouldn't land on either spot specifically. I would say that a situation in which you get a double deduction can provide real value to you. There's a question, in terms of balancing competitiveness with tax fairness and neutrality, of whether that's the regime you want to allow

Finance committee  Barbados does not hold a monopoly on a low-tax regime. That's right.

Finance committee  Thank you for the question. I have two points in response. First of all, $40 million was not the full amount. The estimates in the budget material referenced a $10 million revenue associated with the proposal in the first year and a $40 million revenue gain for the government

Finance committee  Thank you for the question. I do want to stay clear of any potential cases that are under litigation or any similar cases that are currently in appeal or before the courts, but I think I'm still able to answer your question. Yes, there are certain circumstances. The illustration

Finance committee  The policy proposal is built on the existing system. It reflects an exemption regime for foreign business profits that are brought home to Canada. I've already mentioned a couple of times today that there can be some perhaps perverse effects of imposing a system of taxation only