CANADIAN TAXES

Dominion, Volume 37, Issue 233, 29 June 1944, Page 6

CANADIAN TAXES

Easing Of Incidence (Received June 28, 9.30 p.m.). ■ OTTAWA, June 27. The Minister of Finance, Mr. Ilsley, has announced that the compulsory savings portion of Canadian income tax will be discontinued and there will be no tax increases. Mr. Ilsley said the suspension of compulsory sayings did not mean a reduced need of saving. Actually, the need was greater, but the compulsory savings were looked upon as tax rather than as refundable amounts. This was having an effect on production at a time when full production was sorely needed. Other taxation revisions announced included a provision that in-laws may qualify as dependent relatives for income tax purposes, and the tax allowances for children will include all children dependent on the taxpayer, including illegitimate children previously not covered. 'Revisions of the corporation income tax and the excess profits tax provide that losses in any year may be charged back one year or’ forward three years. Business concerns will be granted double depreciation on new capital investments after a certain date. Provision is also made for the rapid depreciation of new assets for tax purposes. Mr. Ilsley also announced the repeal of the exchange restriction on the import of non-essential goods from _ tire United States because of the great improvement in the'foreign exchange position, thus removing the prohibition on the importation of a large number of articles. _ A Royal Commission is to be appointed to make recommendations on: (1) The taxation of life annuities and similar kind of income; and (2) cases of hardship arising from combined' income tax and succession duty in the case of the death of the chief shareholder of a private company with a larger earned surplus. , . • By the abolition of compulsory savings, which were repayable with interest after the war, revenue of 110,000,000 to 115,000,000 dollars yearly is relinquished.