TAXES DEPARTMENT.

Dominion, Volume 3, Issue 673, 25 November 1909, Page 7

TAXES DEPARTMENT.

■ ' 9 CHARGES iAGArfKT' S IHEuCOM)VIISSIONEIV ) ' ASSESSHEKIS 1 "TO -BE J .TESIED. ME. HEIES BELIEVED OP DOTY FOR THREE MONTHS, An important etatemont was made by the I'nme Minister Inst evening in regard to the inquiry recently held by their Honours Justices Cooper and Chapman into certain' onargos affcoting tho Commissioner of Taxes (Mr. P. Hoyos). / . The oharges. Sir Joseph said, were embodied m letters received by tho Government on November 3 and i. The letters contained tlio names of certain taxpayers and statements as •■ to tho assessments,of their businesses. Tha Government appointed two judges to act as com--missioncrs to investigate and report upon, the charge;. The commissioners 6at on three '•ays, called evidence, and fully investigated the charges. The report had been received on Noveml)cr 18, but owing to the illness of two Ministers Cabinet was not able (o deal with tho matter until yesterday. As the evidence and report contained many references to taxpayers by name, and their busi--ness and business negotiations, it was impose ' *ible to make cither of them public, but h« felt it to bo his duty to make a statement ta the House on tho matter. At tho outset, he ' might say that the judges discharged Mr. Hoycs from any sinister design or dishonest purpose in connection with the matters al* lcjjed against him, and considered that the evidence disclosed' a high orSer of administrativo ability, great industry i , wide knowledge of business . affairs, and ,i marked faculty of organisation. In a , lengthy review of tho' evidence in regard lo each of tho different charges against'his administration they btated that there nas dis-"" I closed considciablo friction between himself v ■ and tonw of tho officers under him, also con. siderablo doubt as to the prudence of tho ex- i erciso of his discretion, 1 in connection with/tho ossifluent and collection of tho taxes duo by tho different persons. With regard to the chief of these the prudence or propriety of vhat ho did would bo tested shortly by the Crown Liw Office and possibly be referred to tho Law Courts. * In fairness to Mr. Hcycs, and in tho interests of the public, it nas considered that lie should be relieved oi ", , his duties for throo months from Hondar next. ' Mr. Richard6on, Commissioner of the Government Life Insurance Department, was to be placed in oharpo on that da*e of tho wholo of the Departments controlled by Mr. Hoycs. Ho ' might sljto that Mr. Kichardson would not' givo up his position of, Commissioner of tho i Government Life Insurance Department. It was not intended to ask him to do that at present. That course would enable contemplated litigation to proceed if found necossary under entirely independent control o? tho Department, and tha arrangements would' also enable the Government to bo placed in tlio position of obtaining tho fullest information through an independent bead in regard to tho matters under complaint. In connoo- * tion wilh an important mailer,, ho wished to > say that the coum adopted by tho Minister in charge all tkiotigh hud brcn never to interfcro with the matters lfclaHin; to the taxation of individuals, which was tho right course . to adopt. Hβ thought that later on a charge would require to be nuulo so as lo vouiove oven the possibility of a' doubt being cast on whoever might be Commissioner' of Taxos as to the exorcise of the discretion , ' which the law conferred on Mm rclalivo U * ' the treatment of matters in connection with taxation. Before remission or adjustments in taxes wore made, tho Commissioner of Tasos,' in addition to the law officers of tho Crown U advise him, ought to havo co-ordinated will him two important officers—say, tho heads ol two Departments—eo that the-reference is '■ nny case of' dispute would leallv bo to a tribunal or board, so/ns to enable the niafcUa lo' be finally settled. ' ' " ■ Mr, Massoy: And share- the responsibility? _ bir Joseph, continuing, said that, m Minister in charge for a groat many years—off and on— it would bo highly improper if a -MinisteiWas to havo referred to him the individual. ' troubles of any taxpayer. (Hear, hears.) Evcrj cl.isj did business with that important Depart mont; their affaire, wero of the greatest im- ■ portance, and it was only proper that there ' should bo tho 'strictest' pr'vocj in iegard to them. If Hie Minister in charge had matters ' referred lo him of n delicate nature as re- ' pards luxation, it would crcateian. uneasy 'feeling. He porsonnlly had never .examined into r.or| hnd inferred to him the r casp of anyone, doii/buSiness witl tho Dcparffiont. It placed Ine head of Iho Deportment in tho position of wiving to act according (o his owu judgment, imd without that'reference to a highorauthorlly which the , heads of otlier Departments possessed. That was the weakness of tho system, and ho recognised it ehonld be remedied, If there were tho lccognised heads of two other Departments by law associated with tho Commissioner of Taxes, nnd the throo had to agree , on matters in dispute, it would bo a .sonroo of protection to tho Commissioner of Taxes and a source of satisfaction to people dealing with the Department, and would inspire a greater feeling of confidence, for there would bo a thoroughly impartial, tribunal dealing with matters of the kind. He, could not refer to the details of the judges' report, for thp obvious reason that it would entail on him doing 'what tho law did not allow. By ,tho Commissioner of Taxes boiug relieved of his duties for tho tiraq ho had named it would, tho ad-~ ministration of another high officer, give a full opportunity to have each and every case that ■ had been the subject of dispute examined into by an independent officer, and with respect to ' whatever required to be done it might be depended that it would be' done. Mr. Massey said that it was satisfactory to know that the charges were not eo serious as . many people imagined, or.if they wcro, so serious, that they had not been substantiated." But ho could not follow the Prime Minister: in his reasoning when he'said that tho report, could not be laid upon tho table on tho ground that it contained tho names of certain tax- ■■ . payers. No member of tho House, ho was sure, desired to have Die private business of any individual disclosed, but thcro was no reason why the report should not be laid on' ' , the table. Tho names need not bo disclosed; thev could be left blank. Mr, 'Wilford: Or referred to by letters. Mr. Massey: Yes, they could be referred to' by letters. If the report was not kid upon tho table the public rightly or wrongly would get the impression that there wns something withheld and Uie Department would suffer in ' consequence. Tho responsibility of restoring the confidence of the public in tho Department rested with the Government, and it depended on them to make euch chaiiges as would restow ' confidence in the work of the Department. '