March 19, 1948

PC

Gordon Knapman Fraser

Progressive Conservative

Mr. FRASER:

Just a minute. I believe the house should know-*

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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LIB

James Horace King (Speaker of the Senate)

Liberal

Mr. SPEAKER:

Order. The hon. member has already put his question.

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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PC

Gordon Knapman Fraser

Progressive Conservative

Mr. FRASER:

I should like to put it in a different way. I should like to ask the Minister of Trade and Commerce if he is asking that this be done under the foreign exchange control board, or just how is it to be done?

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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LIB

George Alexander Cruickshank

Liberal

Mr. CRUICKSHANK:

Under nails.

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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PC

Gordon Knapman Fraser

Progressive Conservative

Mr. FRASER:

We are still short of nails.

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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LIB

Clarence Decatur Howe (Minister of Trade and Commerce; Minister of Reconstruction and Supply)

Liberal

Mr. HOWE:

The letter is tabled. The Minister of Finance will invoke the foreign exchange control board as being the only avenue open to him as long as opposition members hold up passage of his legislation.

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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PC

James MacKerras Macdonnell

Progressive Conservative

Mr. MACDONNELL (Muskoka-Ontario):

If the minister will not put the letter on Hansard as requested, will he not give us some reason other than the entirely inaccurate one he gave a moment ago?

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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?

Some hon. MEMBERS:

Oh, oh.

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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LIB

Clarence Decatur Howe (Minister of Trade and Commerce; Minister of Reconstruction and Supply)

Liberal

Mr. HOWE:

The customary method, Mr. Speaker, of informing members of the House of Commons about the contents of a document is to lay that document on the table of the House of Commons. That I have done.

Topic:   IMPORT RESTRICTIONS
Subtopic:   LETTER FROM MR. HOWE TO MR. ABBOTT IN RESPECT TO CERTAIN GOODS AND EQUIPMENT
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INCOME TAX

FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN

LIB

James Joseph McCann (Minister of National Revenue)

Liberal

Hon. J. J. McCANN (Minister of National Revenue):

Mr. Speaker, some days ago I promised to make a statement with reference to farmers' income tax returns, and I am now ready to implement that promise. Further consideration has been given to the matter concerning the net worth statement set out in the 1947 T.l prairie farmers and farmers' income tax returns.

I cannot emphasize too strongly that it is in the farmer's own interest as a citizen and taxpayer to provide accurate and complete information of his activities so that he can be dealt with in the same way as every other taxpayer in the country.

The department has placed in the hands of the farmer guide books which should prove of great value in maintaining proper information as to the operation of his farming business, and therefore should be of great help to him in completing his tax return. It will be beneficial to the farmer if he will carefully read the book and the form and attempt to complete it in its entirety.

It has been. the experience of the department that many farmers reporting income do not maintain book-keeping records of their affairs. Our assessors have found in innumerable instances that, to determine the taxable income of the average farmer, it has been necessary to prepare, with the farmer's assistance, of course, a statement of the farmer's net worth and therefrom to calculate or estimate the taxable income.

To assist the farmer and to facilitate the assessing, the 1947 form was evolved, and included with it on page 5 is a statement of net worth. It was proposed that the farmer would complete this statement at the time he completed the return and that the department's assessors would then be in a position to proceed to the determination of the taxable income expeditiously and, in a great many oases, without further reference to the farmer.

It is now represented that this statement of net worth is too complex and that the average farmer will find it impossible to complete it without assistance. It would be impossible, except at a great cost, to build up the staff of the department to enable officials to call on every farmer in Canada for the purpose of assisting in the preparation of income tax returns.

The department therefore has decided that

(a) those farmers who report their income for 1947 on a cash basis need not complete the farmer's net worth statement section of the return. There may be individual cases where, after the filing of the return, the department will require from a farmer, as from any other taxpayer, in order to make a proper assessment of his income, a statement of assets and liabilities of his business, or other additional information which, in such cases, will be requested in the usual manner.

(b) Those farmers who report 1947 incomes on an accrual basis must attach to the return a statement of assets and liabilities, as heretofore, or complete the appropriate parts of the net worth statement attached to the return.

Objections have been raised with reference to net worth statement for fishermen. The adjustment of this matter is being given consideration.

House oj Commons

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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LIB

Gordon Benjamin Isnor

Liberal

Mr. ISNOR:

Can the Minister of National Revenue make a further statement about the fishermen? He said the matter was being given consideration.

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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LIB

James Joseph McCann (Minister of National Revenue)

Liberal

Mr. McCANN:

I will do so at a later date.

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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PC

Douglas Scott Harkness

Progressive Conservative

Mr. HARKNESS:

May I ask a question of the minister? What will be the situation of farmers who have already on a cash basis turned in their income tax returns with this net worth statement filled out? Will they be required to continue to do that in future years? *

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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LIB

James Joseph McCann (Minister of National Revenue)

Liberal

Mr. McCANN:

That is a matter which will have to be given further consideration and determined from year to year.

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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PC

Douglas Scott Harkness

Progressive Conservative

Mr. HARKNESS:

Why?

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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CCF

George Hugh Castleden

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

Mr. CASTLEDEN:

In view of the minister's statement in respect to farm income tax, what arrangements have been made to give publicity to the department's decision as to net worth statement on farm income tax forms? This is March 19.

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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LIB

James Joseph McCann (Minister of National Revenue)

Liberal

Mr. McCANN:

That is a departmental affair which has already been arranged, and full publicity will be given the matter.

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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PC

George James Tustin

Progressive Conservative

Mr. TUSTIN:

I understood the Minister of National Revenue in his statement to refer to "prairie farmers and farmers". Was he then referring to the eastern farmers as well as the farmers of the west?

Topic:   INCOME TAX
Subtopic:   FARMERS-STATEMENT ON NET WORTH PORTION OF RETURN
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March 19, 1948