June 8, 1948

PC
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

I will abide by the rules, if you will.

Topic:   CUSTOMS TARIFF
Permalink
CCF

Angus MacInnis

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

Mr. ANGUS MacINNIS (Vancouver East):

Mr. Speaker, I have only a few words to say in support of the amendment moved by the hon. member for Winnipeg North Centre (Mr. Knowles). It seems to me there is a contradiction in the statement made by the Minister of Finance (Mr. Abbott). He said that he has had assurances from exporters in Great Britain that they would not take advantage of this tariff concession so as to raise prices. He went on to say that he had no doubt that that assurance would be lived up to. The minister then introduced a provision to meet a situation which he has no doubt will not arise. It seems to me that that is not very complimentary to the people who gave him the assurance.

Customs Tariff

Topic:   CUSTOMS TARIFF
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

They might not be able to do anything about it.

Mr. MaoINNIS: But there is another factor which enters into the matter. Our customs tariff provides protection for certain industries. It is not an unknown thing for these industries to take advantage of the tariff to raise their prices. Is there any provision in the customs tariff act whereby, should a protected industry use the tariff to enhance prices, the government by order in council may withdraw the protection? Surely if it is to operate in this narrow application, it should operate in the wider field, where there is so much opportunity for abusing the protection given.

Topic:   CUSTOMS TARIFF
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

I think there is a section like that in the customs tariff.

Topic:   CUSTOMS TARIFF
Permalink
CCF

Angus MacInnis

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

Mr. MacINNIS:

The minister has made a weak case for this departure from the normal procedure.

Topic:   CUSTOMS TARIFF
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CCF

Clarence Gillis

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

Mr. GILLIS:

I was paired with the

Minister of National Health and Welfare (Mr. Martin). Had I voted, I would have voted for the amendment.

Topic:   CUSTOMS TARIFF
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

I was paired with the hon. member for Stanstead (Mr. Hackett). Had I voted. I would have voted against the amendment.

Topic:   CUSTOMS TARIFF
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LIB

Eugène Marquis

Liberal

Mr. MARQUIS:

I was paired with the hon. member for Charlevoix-Saguenay (Mr. Do-rion). Had I voted, I would have voted against the amendment.

Topic:   CUSTOMS TARIFF
Permalink
PC

Alfred Johnson Brooks

Progressive Conservative

Mr. BROOKS:

I was paired with the hon. member for Pictou (Mr. McCulloch). Had I voted, I would have voted for the amendment.

++NAYS

Messrs:

Baker

Beaudoin

Beaudry

Belzile

Benidickson

Bertrand (Prescott)

Bertrand (Terrebonne)

Blaekmore

Boivin

Bourget

Bradette

Brown

Chevrier

Claxton

Cloutier Cockeram Cote (Matapedia-Matane)

Cote (Verdun)

Denis

Dickey

Dion (Lake St. John-Roberval)

Dionne (Beauee)

Douglas

Drope

Emmerson

Fair

Topic:   CUSTOMS TARIFF
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IND

Herbert Wilfred Herridge

Independent C.C.F.

Mr. HERRIDGE:

I was paired with the hon. member for Fraser Valley (Mr. Cruick-shank). Had I voted, I would have voted for the amendment.

Topic:   CUSTOMS TARIFF
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SC

Charles Edward Johnston

Social Credit

Mr. JOHNSTON:

I was paired with the hon. member for Halton (Mr. Cleaver). Had I voted, I would have voted for the amendment.

Motion (Mr. Abbott) agreed to, and bill read the third time and passed.

Topic:   CUSTOMS TARIFF
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INCOME TAX ACT

REVISION AND CONSOLIDATION


Hon. DOUGLAS ABBOTT (Minister of Finance) moved that the house go into committee to consider the following resolution: That it is expedient to introduce a measure to revise and consolidate the law respecting the levying of income tax and the administration thereof. Motion agreed to and the house went into committee, Mr. Macdonald (Brantford City) in the chair.


LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

Mr. Chairman, this is the formal resolution to precede the introduction of what was known last year as Bill No. 454, to revise and consolidate the income tax law.

I would hope that the resolution might beadopted with, shall I say, a minimum ofdiscussion in order that the bill may be

introduced and distributed to members.

It is a technical and complicated and very lengthy bill. A great many changes have

been made since the original bill was introduced last year, following representations received from groups throughout the country, boards of trade, the bar association, the chartered accountants association, and so on, and also as a result of further study by our own staffs. It would be my intention, as I indicated a short time ago, to refer the bill to the banking and commerce committee for detailed study after it receives second reading. I think the bill could be more effectively dealt with there, where taxation experts and the draftsmen could appear and explain the various provisions. A tremendous amount of work has been done on the bill since it was introduced almost a year ago, and I believe it represents a forward step in the revision and consolidation of our income tax law.

Topic:   INCOME TAX ACT
Subtopic:   REVISION AND CONSOLIDATION
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PC

John Bracken (Leader of the Official Opposition)

Progressive Conservative

Mr. BRACKEN:

Is there any change in tax rates or exemptions, or are the changes with respect to administration only?

Topic:   INCOME TAX ACT
Subtopic:   REVISION AND CONSOLIDATION
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

There are no such changes as my hon. friend mentions. Appropriate amendments were made to the Income War Tax Act, which was passed yesterday, with respect to any changes of policy included in the bill. There is nothing in the bill which changes tax rates or exemptions or anything of the sort. It is simply a revision and consolidation, with certain policy changes with respect to administrative detail rather than income tax rates.

As I indicated in my budget speech, the bill will not be given retroactive effect but will become effective from the first of January next, that is for the next calendar year. As the committee will appreciate, that will afford

Income Tax Act

opportunity for further changes at the next session of parliament should others be found necessary between now and then.

Topic:   INCOME TAX ACT
Subtopic:   REVISION AND CONSOLIDATION
Permalink
PC

Karl Kenneth Homuth

Progressive Conservative

Mr. HOMUTH:

This bill is lengthy and will require a great deal of consideration. If the minister hopes to get it through the house this session, I suggest that the banking and commerce committee sit as often as possible.

Topic:   INCOME TAX ACT
Subtopic:   REVISION AND CONSOLIDATION
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. ABBOTT:

I am in the hands of this committee, but if it could be arranged, I would like to have the banking and commerce committee take up the bill early next week and work on it steadily. Many sections wall not be controversial, and will simply interest lawyers. The heart of the bill is contained in fifteen or twenty sections, which will require particular attention. They deal with such things as the rules for depreciation and valuation of inventories. They are very important from the point of view of the amount of tax collected, and will require careful consideration by the committee.

The provisions of the bill have already received much study by such representative bodies as boards of trade, the chartered accountants association, the bar association, and others with specialized knowledge. I think the committee will find that the officials who have, worked long and hard on the bill will be in a position to explain it thoroughly before the committee. I would hope that we could get it through this year, and I think we should make every effort to do so.

Topic:   INCOME TAX ACT
Subtopic:   REVISION AND CONSOLIDATION
Permalink

June 8, 1948