March 22, 1943 (19th Parliament, 4th Session)

LIB

Mr. GIBSON: (Minister of National Revenue)

Liberal

1. It is not the intention of the government to have any change made in the provisions of the Income War Tax Act or the Excess Profits Tax Act which exempt the income of cooperative companies and associations from taxation thereunder; but, in view of opinions given by the Department of Justice, after an investigation of the facts, that certain corporations, referred to in the question as the wheat pool organizations of western Canada, do not qualify for tax exemption under such provisions, it is felt desirable that the questions of facts and of law pertinent to the liability of such corporations for tax be brought before the courts for investigation and final determination.
The Department of Justice has advised that the most practical method of getting these matters before the courts in a manner that will provide opportunity for a full investigation of all pertinent questions will be to assess such corporations, so that they may appeal from such assessments in the usual way if they continue to dispute liability.-
It is the intention of the government to make such assessments and, if appeals are made by the taxpayers, the government will be prepared to discuss with the representatives of these corporations such arrangements as may be necessary to provide that the costs of such appeals to the corporations will not be greater than would be occasioned to them by a reference to the courts by the government itself.
2. This question cannot be answered at this time.

Topic:   TAXING OF WHEAT POOL ORGANIZATIONS
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