Finance committee  We have not done any economic analysis of the existing situation with respect to trade and investment with Madagascar, or attempted to cost that.

Finance committee  I am not aware of any specific carbon tax plan in Madagascar.

Finance committee  In responding to the question, it might be helpful to clarify the taxes that are within the scope of this double taxation agreement for Canada. It includes taxes on income under the Income Tax Act. In respect of Madagascar, it includes the tax on income, the synthetic tax, the di

Finance committee  Our understanding is that the majority of Canadian investment in Madagascar is in the mining sector; that is the sector of most interest for Canadians. We understand from Global Affairs Canada that there are at least five Canadian-based companies active in the Madagascar mining s

Finance committee  Okay.

Finance committee  Our understanding is that they have a tax administration that administers their tax law. They have a comprehensive tax system. and It's my understanding that it is administered as such.

Finance committee  Madagascar has a fairly small tax treaty network. I know they have a tax treaty with France. Beyond that, off the top of my head I'm not sure who else they have tax treaties with.

Finance committee  They are similar, yes.

Finance committee  The best answer is that while the treaty was actually negotiated a number of years ago, it was not further advanced because of the political instability in Madagascar. It was only after there was more political stability that efforts were renewed, leading to the signature of the

Finance committee  That's correct.

Finance committee  This agreement is very similar to other agreements that we have negotiated with the majority of our other treaty partners. In respect of the withholding rate, on dividends looked at from a Canadian perspective it would be reduced from the 20% domestic withholding rate in the Inco