April 7, 1916

CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

The assessment

would have to be made, and then, if he failed to pay at the time that the payment became due, the interest penalty would apply.

Topic:   TAXATION OF PROFITS.
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LIB
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

I say that the

assessment would be made. By " assessment " I mean, if appealed against, the assessment as revised or confirmed by the court.

Topic:   TAXATION OF PROFITS.
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LIB

Edward Walter Nesbitt

Liberal

Mr. NESBITT:

Subsection 3 seems to be more in accord with the Statute of Limitations?

Topic:   TAXATION OF PROFITS.
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CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Yes.

Topic:   TAXATION OF PROFITS.
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LIB

Alexander Kenneth Maclean

Liberal

Mr. A. K. MACLEAN:

Is the word "for" in line 35 correct? The line reads: "to be paid by any person for the tax." Should not that be " to be paid by any person as the tax"?

Topic:   TAXATION OF PROFITS.
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CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

I think it would be better phraseology to say " the amount of the tax to be paid by any person." I therefore move:

That subsection 2 be amended by inserting the words " of the tax " after the word " amount " in line 34, and by striking out the words "for the tax " in line 35.

Subsection 2 will then read:

The minister shall not be bound by any return or information supplied by or on behalf of a taxpayer, and, notwithstanding such return of information, or if no return has been made, the minister may determine the amount of the tax to be paid by any person.

Topic:   TAXATION OF PROFITS.
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Amendment agreed to.


LIB

Alexander Kenneth Maclean

Liberal

Mr. A. K. MACLEAN:

Subsection 4 gives the minister power to distribute the assessment between the original owner and the subsequent owner?

Topic:   TAXATION OF PROFITS.
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CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

Yes.

Topic:   TAXATION OF PROFITS.
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LIB

Edward Walter Nesbitt

Liberal

Mr. NESBITT:

But it does not give him power to distrain on the goods, and the owner may be worthless.

Topic:   TAXATION OF PROFITS.
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CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

I think that is the best you can do under the circumstances referred to.

Topic:   TAXATION OF PROFITS.
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LIB
CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

If he has sold out, the goods are gone.

Topic:   TAXATION OF PROFITS.
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LIB

Edward Walter Nesbitt

Liberal

Mr. NESBITT:

Not necessarily. I may

sell out to the Chairman, but my goods are still in the business which the Chairman carries on.

Topic:   TAXATION OF PROFITS.
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CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

But he may have sold them by the time the assessment can be made.

Topic:   TAXATION OF PROFITS.
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LIB

Edward Walter Nesbitt

Liberal

Mr. NESBITT:

I do not think subsection 4 is a very good one. It is the person who endeavours to evade the tax that we want to make pay.

Topic:   TAXATION OF PROFITS.
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LIB

Alexander Kenneth Maclean

Liberal

Mr. A. K. MACLEAN:

Is there any provision in the Bill for establishing a lien?

Topic:   TAXATION OF PROFITS.
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CON

William Thomas White (Minister of Finance and Receiver General)

Conservative (1867-1942)

Sir THOMAS WHITE:

There is further on in the Bill.

Topic:   TAXATION OF PROFITS.
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LIB

Edward Walter Nesbitt

Liberal

Mr. NESBITT:

Subsection 4 says, in part:

The minister may, if-he thinks fit, take the accounting period as the period ending on the date on which the ownership has so changed and assess the tax on the person who owned or carried on the business or acted as agent for the person carrying on the business at that date.

As I understand it, he does not take the right to levy the tax on the business itself, no matter who may be carrying it on. If he did so, the person who purchased would be very careful to see that he had deducted the amount that was liable for the tax from the purchase price, as is usually done in a transfer of real estate.

Topic:   TAXATION OF PROFITS.
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April 7, 1916