March 28, 1950 (21st Parliament, 2nd Session)

LIB

James Joseph McCann (Minister of Mines and Technical Surveys; Minister of National Revenue)

Liberal

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

Mr. Speaker, many requests have been made to the government on behalf of farmers and fishermen that the new regulations fixing the rates of depreciation for 1949 and subsequent years should not take effect until 1950. As I previously explained to the house, suspension of these regulations would mean that farmers and fishermen would be entitled to no allowance in respect of depreciation for 1949. It has been decided, however, to amend the regulations so that farmers and
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fishermen will be entitled to claim, in respect of the year 1949, depreciation at the rate prevailing in 1948.
There have also been representations regarding the regulations covering depreciation for taxpayers other than farmers and fishermen, particularly in regard to some of the rates and to the limitation of the allowances to corporations to the amount charged in their financial statements. Because the regulations provide that taxpayers may continue to use the 1948 rates in computing their 1949 income, this matter is not of immediate urgency, but I should like to assure the house that careful consideration is being given to these matters, and that the government's decision will be announced in due course.

Topic:   INCOME TAX
Subtopic:   REGULATIONS WITH RESPECT TO RATES OF DEPRECIATION
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