I should like to point out something else, Mr. Speaker. This particular exemption applies to all Canadian corporations-not just to Canadian corporations that are wholly owned or controlled, but to all Canadian corporations. On the basis of value alone, Distillers could buy a controlling interest in Imperial Oil, Imperial Oil could buy a controlling interest in MacMillan Bloedel and Distillers, and so on, but it only works one way. Imperial Oil could buy the controlling interest in the two Canadian companies, but the two Canadian companies could not buy the controlling interest in Imperial Oil because that resides in the United States. At a time when we are worried about foreign ownership we give an "open sesame" to foreign subsidiaries that are here already to go out and buy more Canadian companies. Then the Minister of Finance tells them, "We will pay half the cost by allowing you to deduct that interest cost from whatever profit you are making and whatever business you are in".
Topic: GOVERNMENT ORDERS
Subtopic: INCOME TAX ACT