Wait a minute. They
cannot, for this reason. To. do that you would have to try to segregate that portion of the time of the four executives of the parent company which is devoted to the interests of the subsidiaries and then charge against the subsidiaries a proportion of their salary and have these men receive their salaries in fifty pieces, fifty cheques, from fifty subsidiaries. The thing is simply not reasonable or feasible, but for the purposes of operation of their subsidiaries it is essential to have these four officials in the head office. No matter how the minister exercises his discretion, if this subsection is passed the net result will be to triple taxation on a part of the earnings of the combined subsidiary and parent companies. I do not care how the discretion is exercised, that will be the result. The parent company has an income of, say, $100,000 from its subsidiaries, which is therefore non-taxable, and the parent company earns from its own operations, in exactly the same business as the subsidiaries, another $100,000 gross income. The parent company's expenses of operations are $80,000 a year, but included in this $80,000 are the salaries of four officials.