of the opinion that the following will better express what is desired, and I therefore move that this be substituted for section 7 as it
7. Section ninety-one of the said Act is amended by adding to subsection one thereof the following paragraphs:-
'*(d) When a manufacturer becomes licensed hereunder, of the tax paid in respect of any partly manufactured goods on hand at the date of his license, but only when such partly manufactured goods have been used in, wrought into, or attached to taxable articles manufactured for sale and sold; _
(e) When a wholesaler becomes licensed hereunder, of the tax paid in respect of goods on hand at the date of the license but only when such goods are sold. The refund shall be computed at the rate of tax prevailing at the date of the license."
When a manufacturer became licensed under the act, not previously having held a license, he had to pay the sales tax. Now he becomes licensed, and when he sells after that the sales tax is collected. Therefore it might be paid twice. Consequently we allow him a refund or credit for the tax paid in the first instance.
We disposed just now of the sales tax on liquors which are evidently exported, but we have omitted to include the gallonage tax. I presume the committee will accept the following amendment:
That the following be inserted as section 8:
Subsection 3 of section 80 of the said act is repealed and the following substituted therefor: . .
(3) Notwithstanding anything contained in this section such excise tax shall not be payable when such automobiles or cigars are exported under regulations prescribed by the minister. The tax imposed by this section shall be payable on ale, beer, porter and stout unless such goods are exported in bond by the manufacturer thereof and foreign landing certificates, satisfactory to the minister are produced as proof that said goods have been landed at the place designated in the export entry.
That subsection one of section 106 of the said act be repealed.
In 1927 a provision was passed whereby a penalty of five per cent was imposed upon those who did not make their sales tax returns each month. We find it impossible to calculate what the penalty should be until there is actually a sales tax return. The provision is not a very practicable one, as we have discovered, and we are therefore repealing it. There are still two penalties left. In the first, place we can proceed in the courts against the man who does not or will not make a monthly return; he can be fined. In addition to that there is the penalty of two-thirds of one per cent per month, or 8 per cent per annum for failure to pay so long as he does not pay. That is all. We are really reducing the penalty somewhat, but we have still the power to proceed and to fine a man for refusing or neglecting to make his returns. And of course there is the further penalty-if you care to call it a penalty-of interest at the rate of 8 per cent per annum.