June 3, 1941

LIB
NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

I think we shquld be

generous to the employee, because with old age pensions at $20 a month, starting at the

age of 70

we hope it will be reduced to 65 when possible-a person with a very small income would feel it hardly worth saving to provide for his own old age unless there was some incentive. Five per cent on SI,200 a year would be $60 a year, which in forty years would amount to $2,400, plus accumulated interest, and the income on that sum would be less than the old age pension. People should be encouraged to save and provide for their own old age. I had the problem presented by a member of my staff whether it was worth while saving for an annuity because after a certain period of years the amount received would be hardly more than the old age pension.

Topic:   INCOME WAR TAX ACT
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Section agreed to. On section 7-Donations to charitable organizations by taxpayers other than corporations.


CCF

Alexander Malcolm Nicholson

Co-operative Commonwealth Federation (C.C.F.)

Mr. NICHOLSON:

Can the minister give any information as to the amount of the deductions made last year as a result of this provision?

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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I am informed that these figures are no longer kept. For years they were kept but they are not available for last year.

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Section agreed to. Sections 8 to 10 inclusive agreed to. On section 11-Residence of dependents.


LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

It is proposed to amend

this section by inserting after the word "act" in line 23 of the bill the words "or under subsection seven of section twenty-seven of this act."

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LIB

Colin William George Gibson (Minister of National Revenue)

Liberal

Mr. GIBSON:

I move accordingly, Mr. Chairman.

Topic:   INCOME WAR TAX ACT
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Amendment agreed to. Section as amended agreed to. Section 12 agreed to. On section 13-Proviso.


NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

The explanatory note says that sections 13 and 14 are to prevent double taxation. I thought the minister did not object to the principle of double taxation. He told me once there was no .objection to it.

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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

This is to prevent a tax on the same income both here and in another country.

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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

It is all right to tax twice in Canada, but not here and elsewhere?

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Section agreed to. Section J4 agreed to. Income War Tax Act



On section 15-Proviso.


NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

What is the effect of this?

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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

It is a pretty important

section and I am apt to get tangled up when I start to explain it.

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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

I do not understand it myself.

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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I hope the hon. gentleman will understand it when I am through, but I am not optimistic.

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NAT

Richard Burpee Hanson (Leader of the Official Opposition)

National Government

Mr. HANSON (York-Sunbury):

First of all we might have subsection 1 of subsection 9B of the act of 1940 read to get it on the record.

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LIB

James Lorimer Ilsley (Minister of Finance and Receiver General)

Liberal

Mr. ILSLEY:

I think perhaps I can explain it. There is some bond interest which is payable either in Canadian or in foreign funds. The provision first was that if a resident of Canada elected to take his interest in a foreign currency which was at a premium he would be subject to a 5 per cent tax. Certain debtors evaded that provision.

Topic:   INCOME WAR TAX ACT
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June 3, 1941