July 9, 1940 (19th Parliament, 1st Session)


Harry Rutherford Jackman

National Government


Would the minister clarify what is meant by the taking away of the right to income tax exemption from' holders of contractual rights which were in existence on June 24? If I understand him correctly, all people who had taken out dominion government annuities, and perhaps other annuities, on the understanding that they would not have to pay income tax when they became operative, have had that right taken away. Many thousands of our citizens are paying in so much a year, perhaps $300 or $400, on annuities so that when they reach a certain age, say fifty or sixty, they will have a $1,200 income. The understanding was that this income would be tax free as it is stated in the contract, "Income derived from this contract is exempt from dominion government income tax." Is it the intention of the government to repudiate its contract in connection with all these annuities?

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