the 7i per cent or the 9 per cent rate as it has been applied since last year. But it is the effect with which we are concerned- what it works out to. We are supposed to arrive at the non-resident rate. These are in effect non-residents. They are individuals. They may have been British who own shares all over the world, property and shares in India, south America, and many other places; they transferred these shares to a Canadian company which, in many instances, had its head office at Charlottetown, and the individual investors took in return the shares of that Canadian company. Then they received dividends on the shares of the company. But for the most part their property
Income War Tax Act
was abroad. They just put that in this for purposes which were advantageous to themselves.
Let me ask a plain question: did they come here to escape taxation in their own jurisdiction? Is that a true statement of affairs? If it is, of course they alienate a certain amount of sympathy which I might have for them.
I do not think anyone could give a categorical answer, because, as the minister has said, this has been an exceedingly complicated business. Each company is an individual entity of itself, set up for a special purpose, and usually having a trust behind it. But I would say that many of the companies that were created for the purpose of getting more advantageous taxes have ceased to exist since the change in the British finance act in 1936. For the most part these companies came to Canada to obtain, first, security, and, second, through domiciling themselves in Prince Edward Island they avoided any possibility of double succession duty- which was certainly a substantial advantage. There were, however, other purposes as well.