June 13, 1951

LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. Abbott:

I have an amendment which I will ask one of my colleagues to move. It is rather long, and relates to these charitable organizations for which we introduced a provision for tax deduction last year. It arises out of representations that have been made to us that certain charitable foundations might not qualify under the law as it stood.

Topic:   INCOME TAX ACT
Permalink
LIB

James Garfield Gardiner (Minister of Agriculture)

Liberal

Mr. Gardiner:

I move:

That paragraph (eb) set out in subclause (1) of clause 20 be deleted and the following substituted therefor:

"(eb) a corporation that was constituted exclusively for charitable purposes, no part of whose income was payable to, or was otherwise available for the personal benefit of, any proprietor, member or shareholder thereof, that has not, since June 1, 1950, acquired control of any other corporation and that, during the period,

(i) did not carry on any business,

(ii) had no debts incurred since June 1, 1950, other than obligations arising in respect of salaries, rents and other current operating expenses, and

(iii) except in the case of a corporation that was, before the first day of January, 1940, constituted exclusively for charitable purposes, expended amounts each of which is

(A) an expenditure in respect of charitable activities carried on by the corporation itself,

(B) a gift to an organization in Canada the income of which for the period is exempt from tax under this part by virtue of paragraph (ea), or

(C) a gift to a corporation resident in Canada the income of which for the period is exempt from tax under this part by virtue of this paragraph, and the aggregate of which is not less than 90 per cent of the corporation's income for the period,"

Topic:   INCOME TAX ACT
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. Abbott:

Perhaps this amendment

might stand so that hon. members can read it in Hansard. It is a purely technical change in the section as printed in the bill. The change is to cover a particular case that was brought to my attention in connection with the wording. If we can proceed to section 80709-259

Income Tax Act

21, there is a short statement I should like to make before we rise and report progress. It will only take two or three minutes.

Section stands.

On section 21-Armed forces.

Topic:   INCOME TAX ACT
Permalink
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. Abbott:

This section relates to the

special method of collecting taxes from the armed forces. I think we had a very helpful and interesting discussion on this subject, not so much with respect to the new tax collection method from the armed forces but with respect to the desirability of exempting armed forces who are serving in theatres of war or abroad from income tax. I outlined the reasons why I felt the system we followed during the last war was not satisfactory. A good many hon. members expressed their views as to what should be done, and I think it fair to say the general feeling was that special consideration should be given to those members of our forces now serving in Korea and who may be serving in other theatres of war. Suggestions were made that there should be a special increased exemption. I put forward the tentative suggestion that it might be covered by combat pay or something of the sort, but in any case I undertook to give the matter further consideration and see what could be done. The giving of a special, additional exemption of course would involve such inequities as would result from the differing incomes of soldiers. The higher ranking personnel would receive the greater benefit from the exemption, and those with private incomes would also receive a greater benefit.

That can be overcome, however, by using the tax credit method. I am going to propose that we give a tax credit of $1 a day or up to $365 a year for members of the armed forces serving outside Canada, which in the present case would be those serving in Korea. A discretion would be given to determine what geographical areas would render personnel eligible for the tax credit. In effect that would provide an additional exemption of up to $1,900 to the lowest paid other rank. In the case of a single officer it would probably extend to a captain, and of course in the case of a married officer it would go very much higher.

It seems to me that has a good deal to commend it. While this is not the governing factor, simplicity and ease of administration from the point of view of the forces of course is important, and the $1 a day device makes it very easy for the paymaster to calculate just how much tax credit a serviceman is entitled to. I think the general feeling was that it should apply only to those serving in

Income Tax Act

foreign theatres, that it should not apply to those at headquarters or those doing garrison duty in Canada.

I will not ask the house to debate this amendment this afternoon, but I was anxious to announce that this is the position we have taken. I hope it will commend itself to hon. members generally, and particularly to those who have had some experience with the forces. I do not say it is generous, perhaps nothing could be too generous in this connection; but I think it is a practical, fair way of recognizing the special contribution being made by these members of our armed forces. I would like the amendment put formally, so hon. members may read it in Hansard.

Topic:   INCOME TAX ACT
Permalink
PC
LIB

Douglas Charles Abbott (Minister of Finance and Receiver General)

Liberal

Mr. Abbott:

Perhaps I might read it and then ask my colleague to move it.

That the introductory words of subclause (1) ol clause 21 be deleted and the following substituted therefor:

"21. (1) The said act is further amended by inserting the following heading and sections after section sixty thereof:"

and that the said subclause (1) be further amended by inserting the following section immediately after section 60A of The Income Tax Act as set out therein:

"60B. There shall be deducted from

(a) the tax for the year otherwise payable under this part, and

(b) the tax for a month otherwise payable under section 60A,

of a member of the naval, army or air forces of Canada an amount equal to $1 for each day in the year or month, as the case may be, during which he was on duty as a member of the naval, army or air forces of Canada in a zone outside Canada prescribed by a regulation made on the recommendation of the Minister of Finance." and that subclause (2) of the said clause 21 be deleted and the following substituted therefor:

"(2) Section sixty A of The Income Tax Act as enacted by subsection one is applicable to the month of July, 1951, and subsequent months and section sixty B of The Income Tax Act as enacted by subsection one is applicable to the 1951 and subsequent taxation years."

It was felt that someone had to take the responsibility for bringing in a regulation determining the geographical area in which this special provision would apply; and since it is a tax credit it seemed, appropriate that the Minister of Finance should take that responsibility, and that is the form in which the amendment is prepared. I would ask one of my colleagues to formally move it and it can stand, to be discussed later.

Topic:   INCOME TAX ACT
Permalink
LIB
LIB

Alphonse Fournier (Minister of Public Works; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Mr. Fournier (Hull):

I move that the committee rise and report progress and ask leave to sit again.

Motion agreed to and progress reported.

Topic:   INCOME TAX ACT
Permalink

CRIMINAL CODE

AMENDMENT WITH RESPECT TO RACING ASSOCIATIONS CONDUCTING PARI-MUTUEL BETTING


The house resumed consideration in committee of Bill No. 357, to amend the Criminal Code (race meetings)-Mr. Gardiner-Mr. Dion in the chair. On section 1-Exceptions.


LIB

Alphonse Fournier (Minister of Public Works; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Mr. Fournier (Hull):

I move:

That subclause (ii) of subsection (d) of section (1) of the bill be withdrawn and the following substituted therefor:

(ii) no more than eight races or dashes, or four heat races of three heats each, shall be held during any twenty-four hour period, and

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT WITH RESPECT TO RACING ASSOCIATIONS CONDUCTING PARI-MUTUEL BETTING
Permalink

Amendment agreed to. Section as amended agreed to. Title agreed to. Bill reported.


LIB

Elie Beauregard (Speaker of the Senate)

Liberal

Mr. Speaker:

When shall this bill be read the third time?

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT WITH RESPECT TO RACING ASSOCIATIONS CONDUCTING PARI-MUTUEL BETTING
Permalink
?

Some hon. Members:

Now.

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT WITH RESPECT TO RACING ASSOCIATIONS CONDUCTING PARI-MUTUEL BETTING
Permalink
?

An hon. Member:

By leave.

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT WITH RESPECT TO RACING ASSOCIATIONS CONDUCTING PARI-MUTUEL BETTING
Permalink
LIB

James Garfield Gardiner (Minister of Agriculture)

Liberal

Mr. Gardiner moved

the third reading of the bill.

Topic:   CRIMINAL CODE
Subtopic:   AMENDMENT WITH RESPECT TO RACING ASSOCIATIONS CONDUCTING PARI-MUTUEL BETTING
Permalink

Motion agreed to, and bill read the third time and passed.


BUSINESS OF THE HOUSE

LIB

Alphonse Fournier (Minister of Public Works; Leader of the Government in the House of Commons; Liberal Party House Leader)

Liberal

Mr. Fournier (Hull) moved

the adjournment of the house.

He said: Tomorrow we will go into supply and consider first the estimates of the Department of Defence Production, and some time during the day we will take up the estimates of trade and commerce. If we should be fortunate enough to pass all those items the Minister of Agriculture will proceed with his estimates.

Motion agreed to and the house adjourned at 5.50 p.m.

Thursday, June 14, 1951

Topic:   BUSINESS OF THE HOUSE
Permalink

June 13, 1951