Finance committee  We agree. It will change whether people take out interest.... We were talking about some of the options, and Am can jump in here too. When you need to expand the business or you're going for capital, if debt is not one of the options because you're not going to be able to write

Finance committee  There are safeguards one could suggest. Going back to the member from the Bloc, he talked about Quebec having some safeguards. I would just like to mention that the safeguards in Quebec are so prescriptive it's very difficult to even fall into them. We're finding that a lot of fa

Finance committee  There really are a lot of differences between the two countries. We have a capital gains exemption. They have some gift taxes. They have gift exemptions. There are a lot of differences between the two countries. It's something we could absolutely look at and bring back to the c

Finance committee  In their tax reform bill in the United States, they took a three-pronged approach. They said they were dropping their corporate tax rate from 35% to 21%. They were having an immediate writeoff of asset acquisitions, with immediate expensing of all assets. They were also having an

Finance committee  When the capital gains exemption was first brought in, there was a worry, I think, that you would extract money in self-dealing transactions with a capital gains exemption.

Finance committee  We have been here many times over the years to talk about the TOSI rules. These rules are very punitive to family-owned businesses. They're very punitive to the spouse. There is this general presumption that someone maybe isn't doing his or her fair share to earn the income out o

Finance committee  We agree with that. We think there are a lot of unintended consequences. I don't think we have even thought about what they would all be yet. There are far-reaching effects even when the economy is not so great, and there might be losses for businesses. Now, in times of losses,

Finance committee  They absolutely are.

Finance committee  It depends on whether it's an individual lending it or a corporation lending it.

Finance committee  If it's an individual lending it, they're taxed at the T4 income rate.

Finance committee  They would be. In any situation where the interest is limited, there's going to be a double-tax component. The recipient of the interest is going to pay tax at either their corporate rates or their individual rates, whatever the case may be.

Finance committee  When it's an individual who lends, that's correct.

Finance committee  They could be. I would like to reiterate that with interest deductibility limitations in other countries, they did it with three prongs. They dropped corporate rates at the same time.

Finance committee  Currently in the Income Tax Act, there are restrictions on deducting interest, so you can deduct interest only if it's for the purpose of gaining or producing income.

Finance committee  If it's for capital in nature, you can't deduct it anyway. What we think is happening is that there are some cross-border transactions where the interest might be leaving Canada without being subject to tax. If that's the case, then they should be focused on that one issue.