June 26, 1923

LIB

Samuel William Jacobs

Liberal

Mr. JACOBS:

As my hon. friend has

helped me out of the hole, I would suggest that he include Micmac, which I understand is current in New Brunswick.

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Subsection agreed to. On section 8, subsection 19g-Refund on goods sold to province if province exempt from tax.


CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON:

Why should this refund be made? 1 always understood my hon. friend required the money.

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LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

The object of this, I am advised, is that a local government, for example, could import an article free of duty, but in the case of a manufacturer or producer producing the same article he would be subject to tax. In that case when he sells to the local government he could get a refund so he would be put on even terms with the importer.

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CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON:

This shows the infinity of trouble my hon. friend is making for himself. I thought it was bad enough when we had a lot of refunds at the commencement, but now apparently claims can be put in anywhere.

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LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

They are all there for a good purpose.

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CON

John Babington Macaulay Baxter

Conservative (1867-1942)

Mr. BANTER:

I do not see why the principle that underlies the exemption of provincial governments should not be extended to municipal governments as well or else be denied to all.

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LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

Under the British North America Act I am afraid we cannot tax the Crown, that is, a provincial government, but we can tax a municipality. That is the ground of the difference.

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CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON:

I think in cases under the Income Tax Act as to questions of priorities and the like we had the general right of taxing fairly well settled. As to the liquor case in British Columbia my recollection is that the Privy Council decided that we had the right.

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LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

For resale.

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CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON:

We put it on resale in that case. Does my hon. friend suggest that the provinces have not to pay customs tariff?

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LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

That is one of the interesting constitutional questions that arise in Canada. We are advised that in all probability we have not the right to impose the tax on provincial governments unless they have the goods for resale.

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CON

Henry Lumley Drayton

Conservative (1867-1942)

Sir HENRY DRAYTON:

I think to-day we are taxing for customs.

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LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

It is a nice legal question to put it mildly and I do not think we ought to put a tax on the provinces which would involve us in difficulties.

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Subsection agreed to. Section agreed to. On section 10-Government or provincial sales; use of postage stamps.


CON
LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

Subsection 3 of section

19 is the clause which permits the use of postage stamps, which after a given date are no longer to be used.

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Section agreed to. On section 11-Schedule 1 amended.


CON
LIB

William Stevens Fielding (Minister of Finance and Receiver General)

Liberal

Mr. FIELDING:

The passages struck out relate to confectionery and beverages, which were the subject of discussion before.

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June 26, 1923