Resolved, that it is expedient to introduce a measure .to amend the Income War Tax Act and to provide:- 1. That the rates of tax applicable to persons other than corporations shall be increased to the rates of tax set forth in the following schedules:

A. Rates of tax .applicable to persons other than corporations and joint stock companies: On the first $1,000 of net income or any portion thereof in excess of exemptions, 15 per centum, or $150 upon net income of $1,000 and 20 per centum upon the amount by which the income exceeds $1,000 and does not exceed $2,000, or $350 upon net income of $2,000, and 25 per centum upon the amount by which the income exceeds $2,000 and does not exceed $3,000, or $600 upon net income of $3,000, .and 30 per centum upon the amount by which the income exceeds $3,000 and does not exceed $4,000, or $900 upon net income of $4,000, .and 33 per centum upon the amount by which the income exceeds $4,000 and does not exceed $5,000, or $1,230 upon net income of $5,000, and 36 per centum upon the amount by which the income exceeds $5,000 and does not exceed $6,000, or $1,590 upon net income of $6,000, .and 38 per centum upon the .amount by which the income exceeds $6,000 and does not exceed $7,000, or $1,970 upon net income of $7,000, and 40 per centum upon the amount by which the income exceeds $7,000 and does not exceed $8,000, or $2,370 upon net income of $8,000 and 42 per centum upon the amount by which the income exceeds $8,000 and does not exceed $9,000, or $2,790 upon net income of $9,000, and 44 per centum upon the amount by which the income exceeds $9,000 and does not exceed $10,000, or 14873-1491 $3,230 upon net income of $10,000, and 47per centum upon the amount by which the income exceeds $10,000 and does not exceed $15,000, or $5,580 upon net income of $15,000, and 50 per centum upon the amount by which the income exceeds $15,000 and does not exceed $20,000, or $8,080 upon net income of $20,000 and 53 per centum upon the amount by which the income exceeds $20,000 and does not exceed $30,000, or $13,380 upon net income of $30,000, and 55 per centum upon the amount by which the income exceeds $30,000 and does not exceed $40,000, or $18,880 upon net income of $40,000 and 57 per centum upon the amount by which the income exceeds $40,000 and does not exceed $50,000, or $24,580 upon net income of $50,000 and 59 per centum upon the amount by which the income exceeds $50,000 and does not exceed $75,000, or $39,330 upon net income of $75,000, and 63 per centum upon the amount by which the income exceeds $75,000 and does not exceed $100,000, or $55,080 upon net income of $100,000, and 67 per centum upon the .amount by which the income exceeds $100,000 and does not exceed $150,000, or $88,580 upon net income of $150,000, and 70 per centum upon the amount by which the income exceeds $150,000 and does not exceed $200,000, or $123,580 upon net income of $200,000, and 75 per centum upon the amount by which the income exceeds $200,000 and does not exceed $300,000, or $198,580 upon net income of $300,000, and 80 per centum upon the amount by which the income exceeds $300,000 and does not exceed $500,000, or $358,580 upon net income of $500,000, and 85 per centum upon the amount by which the income exceeds $500,000. 2. That paragraph AA of the first schedule to the .act be repealed and in lieu thereof there be imposed a tax of 4 per centum on the investment income defined to. include dividends, interest, rents, royalties and other like income and not to include salary, wages, fees or other like income from any office or employment of profit or income derived from the carrying on of a trade, vocation or calling. 3. That the schedule of taxes payable under section 88 of the act on gifts made after April 29, 1941, be repealed and in lieu thereof there be substituted the following schedule: On gifts up to and including $5,000-7 per cent. On gifts exceeding- $5,000 but not exceeding $10,000-8 per cent. $10,000 but not exceeding $20,000-9 per cent. $20,000 but not exceeding $30,000-10 per cent. $30,000 but not exceeding $40,000-11 per cent. $40,000 but not exceeding $50,000-12 per cent. $50,000 but not exceeding $75,000-13 per cent. $75,000 but not exceeding $100,000-14 per cent. $100,000 but not exceeding $150,000-15 per cent. $150,000 but not exceeding $200,000-16 per cent. The Budget-Mr. Ilsley

cent.

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cent. but not exceeding $250,000-17 but not exceeding $300,000-18 but not exceeding $400,000-19 but not exceeding $500,000-20 but not exceeding $600,000-21 *but not exceeding $700,000-22 but not exceeding $800,000-23 but not exceeding $1,000,000-24 $1,000,000-25 per cent, and that section 88 (8) (e) of the act repealed. per per per per per per per per be . 4. That the rates of national defence tax be increased from 2 per centum to 5 per centum wherever 2 per centum is mentioned and from 3 per centum to 7 per centum wherever 3 per centum is mentioned, and that these rates be effective from the first day of July, 1941. 5. That the amount of $600 mentioned in the national defence tax section be raised to $660 for the calendar year 1941 and for each year thereafter. 6. That the maximum allowance for a dependent under the national defence tax be $4 for the calendar year 1940; $14 for the calendar year 1941 and $20 for each year thereafter. 7. That the tax imposed by section 9B(1) shall not be exigible if no part of the premium is paid to the taxpayer. 8. That the rate of tax imposed by section 9B (2) of the act on all non-residents be increased from -5 per centum to 15 per centum and that the exemption in respect of interest payable in a currency other than Canadian be repealed. 9. That the rate of tax applicable to nonresident-owned investment corporations be increased from 9 per centum to 22J per centum. 10. That the tax of five per centum on nonresident persons, other than corporations, in respect of the total amount of the royalties, rentals or similar payments for the use in Canada of patents, real or personal property, or for anything used or sold in Canada, be increased to 15 per centum. 11. That the date of filing annual returns of income by taxpayers, other than corporations, be the 31st day of March in each year in lieu of the 30th April as heretofore. 12. (a) That the provision granting a deduction not exceeding 50 per centum of the net taxable income of any taxpayer which has been paid to any patriotic organization shall be repealed. (b) That donations to charitable organizations described in the act, up to 10 per centum of the net income of any taxpayer other than a corporation, be allowed, provided that this 10 per centum may be increased to 40 per centum of the taxpayer's net income in respect of gifts to the Canadian War Services Fund if subscribed on or before April 7, 1941, and paid on or before December 31, 1941. 13. That donations to charitable organizations made in 1942 and during any fiscal period ending therein or any fiscal period thereafter by any corporation be allowed up to five per centum of the net income of such corporation, [Mr. Ilsley.1 provided that this five per centum may be increased to thirty-five per centum of the corporate net income in respect of gifts to the Canadian War Services Fund if subscribed on or before April 7, 1941, an dpaid on or before December 31, 1941. 14. That the exemptions provided in paragraphs (c), (e) and (i) of subsection 1 of section 5 be allowed only if such dependents are maintained in Canada or within the territory composing the British Commonwealth of Nations or in a country contiguous to Canada; and similarly that for the purposes of national defence tax a taxpayer's marital status and any credit to which he is entitled for dependents be allowed only in respect of dependents maintained in Canada or within the territory composing the British Commonwealth of Nations or in a country contiguous to Canada. 15. That any taxpayer, other than a corporation, who enters upon a monthly, instalment basis of tax payment on or before the 30th September each year, may pay, without interest, in respect of the income of that year, provided at least one-twelfth of the estimated tax based on the income of the prior year is paid in each of the months September, October, November and December, and one-eighth of the unpaid balance of the newly estimated tax based on the income of the calendar year in respect of which the tax is payable is paid in each of the months January to August inclusive. 16. That any corporation which enters upon a monthly instalment basis of tax payment before the commencement of the third month before the close of the fiscal period may pay, without interest, in respect of the income of that year, provided that at least one-twelfth of the estimated tax based on the income of the prior year is paid in each of the four months immediately prior to the close of the said fiscal period, and one-eighth of the unpaid balance of the newly estimated tax based on the income of the fiscal year in respect of which the tax is payable is paid in each of the immediately succeeding eight months following the close of the fiscal period. 17. That the resolutions numbered 1, 2, 5, 9, 11, 12, 14 and 15 shall be applicable to the income of the 1941 taxation period and fiscal periods ending therein and all subsequent periods. 18. That any enactment founded on resolutions numbered 3, 7, 8, 10 and 16 shall come into force on April 30, 1941.

Resolved, that it is expedient to introduce a measure to amend the Excess Profits Tax Act, and to provide: 1. That the definition of profits in the case of a corporation be amended if and to the extent that the corporation is subject to the tax on excess profits set out in the second part of the second schedule so as to exclude from profits for such purpose any dividends deemed to have been received by it as a result of distribution of assets on the winding up or discontinuance of business of any other Canadian corporation, which distribution is by section 19 of the Income War Tax Act deemed to be a dividend and to be taxable income of the company receiving the The Budget-Mr. Ilsley said dividend, provided that if the company receiving the said dividend is owned to the extent of fifty per centum or more of all its issued capital stock and bonds and any other type of security by or on behalf of twenty-five individual stockholders or security holders or less or is in fact controlled by such number of individual stockholders, this provision shall not apply. 2. That the definition of standard period, and also of standard profits, be amended to require the taxpayer to apportion to the four calendar years, 1936, 1937, 1938 and 1939 the profits of their corresponding fiscal periods which do not coincide with the calendar year. The apportionment must be on an equal daily basis 3. That the definition of standard period, and also of standard profits, be amended to allow standard profits to be computed from the time of actual commencement of business rather than from the legal date of commencement of business, the date of actual commencement to be determined by the minister in his discretion in the light of the circumstances of the particular taxpayer. 4. That the definition of standard period be amended to give the taxpayer the choice of his three best years if the profits of his fourth standard year after adjusting for capital additions or withdrawals were less than fifty per centum of the average of the profits of the other standard years. In the case of taxpayers who have been in business only three out of the four standard years and the profits of one of the three years after adjusting for capital additions or withdrawals -were below fifty per centum of the average of the other two years the proposed amendment will allow them to use the profits of the two best years in computing their standard. 5. That the definition of standard profits be amended by adding thereto a proviso that in no case shall a taxpayer's standard profits be less than five thousand dollars. 6. That the adjustment to standard profits by reference to any increase or decrease in depreciation allowances or other charges as provided by paragraph (d) of subsection 1 of section 4 be repealed. 7. That the adjustment to standard profits by reference to increases or decreases in capital be amended to provide for an adjustment at a fixed rate of seven and one-half per centum on the capital change, with the proviso that if new capital to the extent of thirty-three and one-third per centum has been added since the standard period the taxpayer will have the option of being considered a new business. 8. That the procedure for a depressed business applying to have its standard profits determined by the board of referees on a capital-standard basis be altered so that the taxpayer may file his return and pay his tax on the basis of a standard profits computed by the taxpayer himself, at a percentage on capital which he deems fair and reasonable but being not more than ten per centum on "capital employed" as defined in the act, with the right of the minister to refer any case to the board of referees to have the standard profits finally determined by that body. 9. That power be given to the board of referees in the case of both new businesses and depressed businesses to ascertain a fair and reasonable standard profits on some basis other than the capital-standard basis in those cases where the capital employed in the business is so small when compared with the earning power of the business or where other special circumstances of the taxpayer are such that to utilize the capital-standard basis would result in an unjustifiable hardship or would create extreme discrimination or jeopardize the continued existence of the business of the taxpayer. 10. That the inventory-reserve provisions in the act be amended: (a) to give the taxpayer the right to provide against a decline in inventory values having regard to a normal quantity of stock in trade as indicated by the quantity on hand during the standard period; (b) to give the taxpayer the right to provide against a decline in inventory values either to the prices obtaining at the close of his 1939 period or to the prices obtaining during the month of August, 1939; and (c) to provide that a taxpayer who has any unutilized inventory reserve on hand at the end of the year when this act terminates shall have only the year following the said year of termination in which to utilize such reserve against any possible price decline and must add any unutilized portion of such reserve existing at the beginning of the second year following the said year of termination to the profits of the last year of the application to the taxpayer of this act. 11. That the exemption from the provisions of this act given to taxpayers with profits of five thousand dollars or less be amended by a proviso to the effect that in the case of taxpayers with profits above five thousand dollars the tax imposed by the act shall not reduce the profits below five thousand dollars. 12. That the profits of diversified investment companies the capital of which is to the extent of eighty per centum or more invested in stocks, bonds or securities, and the gross income of which is to the extent of ninety-five per centum or more derived from dividends or interest on such investments, shall be exempt from taxation under this act provided that not more than 5 per cent of the capital of such companies is invested in stock, bonds or other securities of any one company or debtor, and provided further that the shares of such diversified investment companies have been offered for public subscription or are listed on any recognized stock exchange in Canada or elsewhere, and provided further that each year the profits of such diversified investment companies have been distributed to the extent of eighty-five per centum or more to its shareholders. 13. That the allowance for excess profits taxes and income taxes paid to Great Britain, other British dominions or dependencies or to any foreign country allowing reciprocal deduction with respect to Canadian-paid taxes, be enlarged to provide a combined deduction of the British or foreign income and excess profits taxes from the combined liabilities to Canada for income and excess profits taxes. 14. That the provision for time and manner of payment of any tax exigible under the act be amended in accordance with the amendment proposed for the Income War Tax Act in this respect, namely to provide an optional instalment basis of payment with respect to taxes on 1940 income and fiscal periods ending December 31. 1940, and also to provide an optional instalment basis of payment for taxes on the profits of 1941 and future years. The Budget-Mr. Ilsley

15. That the definition of capital he amended to require the deduction from the original asset values of the total amount of depreciation which has been taken into account in computing net income or loss for income tax purposes plus any accumulated depreciation reserves as at January, 1917, as recognized by the minister for purposes of the Income War Tax Act, and further that the definition of capital be amended to require the deduction of such amount of depletion as the board of referees deems fair and reasonable. 16. That the definition of capital be amended to enable the non-interest-bearing advances from parent to subsidiary corporations, which advances are of a permanent nature and in fact represent invested capital actually employed rather than borrowed capital, to rank as equity capital rather than debts of the subsidiary. 17. That the requirement in the first schedule that dividends paid during the taxation year shall constitute a deduction from the capital employed at the commencement of the period to the extent of one-half the dividends, shall be amended to make it clear that this applies only to cash dividends and not to stock dividends. 18. That the rate of tax on profits provided by the first part of the second schedule shall be increased from twelve per centum to .twenty-two per centum. 19. That all proposals above mentioned except proposals 12. 14 and 18 shall apply to the profits of the year 1940 and the profits of fiscal periods and portions thereof ending in 1940 and to the profits of all years and fiscal periods thereafter, and that proposals 12 and 18 shall apply to the profits of the year 1941 and of fiscal periods ending in 1941, and to the profits of all years and fiscal periods thereafter. 20. That every person liable to tax under the Excess Profits Tax Act in respect of the 1940 taxation period shall have until the 30th April, 1941, to estimate and pay their excess profits tax for 1940 without interest. Thereafter interest will be paid as in the Income War Tax Act provided, as if the fiscal period of all such companies had ended on 31st December, 1941. .

Resolved, that it is expedient to introduce a measure to amend the Special War Revenue Act and to provide: 1. That the definition of "British company" in section thirteen of the said act be amended by deleting therefrom the following words "and includes any association of persons formed in the said Kingdom or in any such dominion or possession on the plan known as Lloyds whereby each associate underwriter becomes liable for a stated, limited or proportionate part of the whole amount insured by a policy." 2. That subsection one of section sixteen of the said act be amended by deleting the words "or of any province thereof" where they appear in the fourteenth line thereof. 3. That the tax on long distance telephone calls be increased from six per cent of the charge made to ten per cent; provided however that upon long distance telephone calls made from any public pay station there shall be paid in lieu of the tax hereinbefore provided for the sum of five cents for each such call for which a charge of more than twenty-five cents and not more than fifty cents is made and five cents for each additional charge of fifty cents or any fraction of fifty cents; and provided further that the tax imposed shall in no case be greater than fifty cents on any one call. 4. That part V of the said act be amended to provide that every purchaser of a ticket or right entitling the purchaser to transportation by railway, bus or aircraft to any place in or outside of Canada or by vessel^ between places in Canada or from a place in Canada and return thereto shall, in addition to the regular charge for the ticket or right, pay to the person selling such ticket or right, for the consolidated revenue fund in addition to the price paid therefor, a tax equal to ten per cent of the said price, provided that such tax shall not apply on the charge for a ticket or right of transportation, if the regular one way charge for such ticket or right to any place in or outside of Canada is fifty cents or less. 5. That the excise tax on cigarette paper tubes be increased from five cents for each one hundred cigarette paper tubes or fraction thereof to ten cents. 6. That there shall be imposed, levied and collected an excise tax of three cents per imperial gallon on gasoline imported or produced or manufactured in Canada; and that where the gasoline is imported, such excise tax shall be paid by the importer or transferee who takes the gasoline out of bond for consumption at the time when the gasoline is imported or taken out of warehouse for consumption, and where the gasoline is manufactured or produced and sold in Canada, such excise tax shall be paid by the manufacturer or producer at the time of delivery of such gasoline to the purchaser thereof. 7. That the excise tax on playing cards be increased from ten cents per pack to fifteen cents per pack. 8. That the excise taxes on wines of all kinds, except sparkling wines, containing not more than forty per cent of proof spirit be increased from fifteen cents per gallon to forty cents per gallon, and that the excise tax on champagne and all other sparkling wines be increased from one dollar and fifty cents per gallon to two dollars per gallon. 9. That there shall be imposed, levied and collected an excise tax of twenty per cent on the admission price to a moving picture theatre, payable by the moving picture exhibitor. 10. That there shall be imposed, levied and collected an excise tax of five per cent of the total amount of bets made through the agency of a pari mutuel system on any horse race run at a lawful race meeting, such tax to be payable by the person conducting the race meeting. 11. That paragraphs (a) and (b) of section one of schedule I to the said act be repealed and the following substituted therefor:- "1. (a) Automobiles adapted or adaptable for passenger use, with seating capacity for not more than ten persons, each valued at $900 or less-25 per cent. Over $900 but not more than $1,200-25 per cent on $900 plus 40 per cent on the amount in excess of $900. Over $1,200-25 per cent on $900 plus 40 per cent on $300 plus 80 per cent on the amount in excess of $1,200. The Budget-Mr. Ilsley (b) Automobiles adapted or adaptable for passenger use with seating capacity for more than ten persons-5 per cent" and that the first proviso to the said section be repealed, which reads as follows:- "Provided that the tax collected under paragraph (b) above shall in no case exceed 1250 per automobile;" 12. That the tax on toilet articles provided for in section two of schedule I to the said act be increased from ten per cent to twenty-five per cent. 13. That the tax on lighters provided for in schedule I to the said act whether or not combined with pencils, cigarette or other cases, be increased to twenty-five per cent. 14. That section five of schedule I to the said act be amended by striking out the words "Cameras, phonographs, radio broadcast receiving sets and tubes therefor" and replacing them by the following words: "Cameras, phonographs, record playing devices, radio broadcasting receiving sets and tubes therefor". 15. That paragraph (b) of section six of schedule I to the said act be amended by inserting after the word "refrigerators" the words "including coils, condensing units, cabinets, boxes, evaporators and expansion valves therefor." 16. That paragraph (d) of section six of schedule I to the said act be amended by inserting after the words "permanent waving machines" the words "and spacers or clamps, rods and heaters therefor." 17. That section two of schedule II to the said act be amended by repealing paragraphs (a) and (b) thereof and substituting therefor the following:- "2. Sugar, etc.:- (a) Materials enumerated in customs tariff items 134, 135, 135 (a)., 135 (b), 139 (except glucose and grape sugar), 140 (except molasses) invert sugar and syrup-two cents per pound; (b) Glucose and grape sugar (except when for use exclusively in the manufacture of leather and artificial silk)-one cent per pound;" and striking out the proviso thereto reading as follows:- "Provided that the tax hereby imposed under paragraph (a) shall not apply to the materials enumerated in customs tariff items 139 and 140, when sold in packages containing not more than ten pounds each." 18. That the tax on carbonic acid gas and similar preparations used for aerating nonalcoholic beverages provided for in section four of schedule II to the said act be increased from five cents per pound to twenty-five cents per pound. 19. That schedule III to the said act setting out the exemptions from sales tax be amended by striking out under the heading "Farm and Forest" in the seventeenth and eighteenth lines the words "Forest products, when produced and sold by the individual settler or farmer" and replacing them by the following words: "Forest products, not to include lumber, when produced and sold by the individual settler or farmer;" 20. That the said schedule III be further amended by deleting therefrom the items under the caption "Building materials". 21. That any enactment founded on this resolution shall be deemed to have come into force on the thirtieth day of April, one thousand nine hundred and forty-one and to have applied on all goods imported or taken out of warehouse for consumption on and after that day and to have applied to goods previously imported for which no entry for consumption was made before that day; provided however that any enactment increasing the tax on glucose and grape sugar in accordance with resolution No. 17 shall be deemed to have come into force on March 31, 1941.

Resolved, that it is expedient to introduce a measure to amend the schedule to the Excise Act, 1934, and to provide: 1. That sections 3, 4 and 5 of the schedule to the said act be repealed and the following substituted therefor: "3. Beer. Upon all beer or malt liquor:- (a) brewed in whole or in part from any substance other than malt, per gallon thirty-five cents; (b) imported into Canada and entered for consumption, per gallon-twelve cents. 4. Malt. Upon all malt:- (a) manufactured or produced in Canada and screened (that is, malt from which the coomings have been removed) subject to the regulations of the Governor in Council with respect to absorption of moisture in warehouse, per pound-twelve cents; (b) imported into Canada and entered for consumption, per pound-twelve cents. 5. Malt syrup. Upon all malt syrup as defined by paragraph (c) of section six of the Excise Act, 1934:- . (a) manufactured or produced in Canada, per pound-eighteen cents; (b) imported into Canada and entered for consumption, per pound-thirty cents.' 2. That any enactment founded on paragraph one of this resolution shall come into force on the thirtieth day of April, one thousand nine hundred and forty-one. . SUCCESSION DUTIES ACT Resolved, that it is expedient to enact a Succession Duties Act to provide inter alia: 1. That succession duties be levied upon or in respect of the following, that is to say: (a) The succession to property, wherever situated, and beneficial interests therein, except real property situated outside of Canada, where the deceased was at the time of his death domiciled in Canada or in one of the provinces thereof: (b) The succession to property situated in Canada, or to beneficial interests therein, where the deceased _ was at the time of his death domiciled outside of Canada. 2. That, in addition to the properties owned by the deceased at his death, the succession shall be deemed to include, for purposes of taxation, the following properties, namely: (al Property transferred by the deceased in his lifetime in contemplation of death; The Budget-Mr. Ilsley

(b) Property transferred by way of donatio mortis causa; (c) Property transferred by gift in the lifetime of the deceased after April 29, 1941, and within three years prior to his death; (d) Property transferred by gift in the lifetime of the deceased where benefits are reserved to the deceased during his lifetime; (e) Property held jointly by the deceased and one or more persons and payable to or passing to the survivor or survivors, except that part of such property which was contributed by the survivor or survivors, provided that where the joint tenancy or holding is created by a person other than the deceased and the Rurvivor or survivors, such property shall be deemed to have been contributed to equally by the deceased and the survivor or equally by the deceased and each of the survivors; (f) Property comprised in a settlement; (g) Annuities or other interests purchased or provided by the deceased to the extent of the beneficial interest arising on his death; (h) Money received or receivable under policies of insurance effected by the deceased or by a personal corporation on his life in proportion to the premiums paid by the deceased or by such personal corporation; (i) Property of which the deceased was at the time of his death competent to dispose; (j) Property transferred to or settled on any person after April 29, 1941, by the deceased afid within three years before his death, in consideration of marriage; (k) Property transferred for nominal or insufficient consideration to the extent of the difference between the consideration and the value thereof; (l) Estates in dower or by the courtesy. 3. That the rates of taxation be based upon the following factors, namely: (a) The "aggregate value" of the succession, that is to say, the fair market value of all property, wherever situated, owned by the deceased at the time of his death together with the fair market value of the properties mentioned in paragraph two of this resolution, after funeral expenses and debts are deducted therefrom; (b) The value of the individual property or benefit passing to each successor; and (c) The relationship, if any, existing between the successor and the deceased. 4. That, for the purposes of taxation, the successors or beneficiaries shall be divided into four classes, as follows: (a) Class A.-The widow of the deceased, any child under eighteen years of age at the date of the death of the deceased, and any child who at that date was dependent upon the deceased for support on account of mental or physical infirmity; (b) Class B.-The grandfather, grandmother, father, mother, husband, son-in-law, or daughter-in-law of the deceased or a child of the deceased eighteen years of age and over at the date of the death of the deceased, and who, at that date, was not dependent upon the deceased for support on account of mental or physical infirmity; (c) Class C.-A lineal ancestor of the deceased (except the grandfather, grandmother, father or mother) a brother or sister of the deceased or any descendant of a brother or sister, or a brother or sister of the father or mother of the deceased or any descendant of any such brother or sister; (d) Class D.-Any person in any other degree of consanguinity to the deceased than as previously mentioned, or a stranger in blood to the deceased. 5. That the rates of taxation shall be according to the following scale for the values mentioned, the rates for intervening amounts to be specified in greater detail in the bill:

Aggregate value ol the succession to property passing in the case of initial duties dependent on such value Initial rates dependent on aggregate value Value of individual benefits, including exemptions in the case of additional duties Additional rates dependent on value of the individual benefits, including exemptions Class A Class B Class C Class D$ % $ % % % %1,000 1,000 1 2 5,000 5,000 2 2 2-5 310,000 10,000 2-25 2-5 3 3-525,000 0-5 25,000 2-5 3 3-5 435,000 1 35,000 3 3-5 4 550,000 1-5 50,000 3-5 4 5 675,000 2 75,000 4 5 6 7100,000 2-5 100,000 5 6 7 8125,000 3 125,000 6 7 8 9150,000 3'5 150,000 7 8 9 10200,000 4 200,000 8 9 10 11300,000 4'5 300,000 9 10 11 12400,000 5 400,000 10 11 12 13500,000 5-5 500,000 11 12 13 14750,000 6 750,000 12 13 14 151,000,000 6-5 1,000,000 13 14 15 161,500,000 7 1,500,000 14 15 16 172,000,000 8 2,000,000 15 16 17 173,000,000 9 3,000,000 16 17 17 175,000,000 10 5,000,000 17 17 17 17

The Budget Mr. Ilsley 6. That the exemptions from duty under the said Succession Duties Act shall be as follows:- (a) Where the whole property passing does not exceed $5,000 no duties shall be payable; (b) Property passing to or for the benefit of the widow of the deceased to the extent of the first $20,000 in value or amount; (c) Property passing to or for the benefit of the widow to the extent of $5,000 for each child of the deceased under 18 years of age at the time of the death of the deceased or dependent upon him for support at that time, if such child does not benefit in respect of property passing on the death of the deceased, provided that if such child does benefit the exemption shall be $5,000 less the amount of the benefit; (d) Property passing to or for the benefit of a child of the deceased under the age of eighteen years or dependent upon him for support at that time on account of mental or physical infirmity to the extent of the first $5,000 in value or amount; (e) Property passing to or for the benefit of the orphan child or children of the deceased under eighteen years of age at the time of his death or dependent upon him for supjmrt at that time on account of mental or physical infirmity, where such property does not exceed $15,000 in value or amount, provided that this exemption shall be in addition to those provided for in the preceding paragraph (d), and provided further that where more than one child benefits the exemption herein provided for shall be divided among such children in proportion to the value of the property or benefit passing to each of them; (f) If the deceased died from wounds inflicted, accident occurring or disease contracted on active service with the Canadian naval, military or air forces in or beyond Canada, in such circumstances that if the deceased left a widow she would be entitled to receive a pension in respect of his death under the Canadian Pension Act; (i) the exemptions granted in the preceeding paragraphs (b), (c), (d) and (e) shall be increased by 50 per cent; (ii) the amount of the tax payable in respect of the succession by persons in class A and class B shall be reduced to the sum which, if accumulated at compound interest tat the rate of 3 per cent per annum from the date of death with half-yearly rests, would at the expiration of the period of the normal expectation of life of a person of the age of the deceased at the time of death (calculated in accordance with ,approved mortality tables) amount to the tax which would otherwise be payable; (g) Property passing to any one person and not exceeding $1,000 in value or amount; (h) Property passing to or for the benefit of any charitable organization in Canada operated exclusively as such and not operated for the benefit or private gain or profit of any person, member or shareholder thereof; (i) Property passing to or for the benefit of the Dominion of Canada or any province or political subdivision thereof; (j) Property given by the deceased in his lifetime and representing the ordinary or normal expenditure of the deceased: (k) Property on which gift tax has been paid under the provisions of the Income War Tax Act, except to the extent to which the duty payable under the act exceeds the gift tax so paid. 7. That there shall be a provision in the said Succession Duties Act making the executor or administrator liable in his representative capacity for all the duties imposed thereby, and making each successor personally liable for the duty on the share of the property or benefit passing to him, with the proviso that if the executor or administrator pays the duty he shall have the right to deduct the same from the property or benefit passing to the successor. 8. That any enactment founded on the foregoing resolution shall come into force on the date when it is assented to and shall apply to deaths occurring after that date.