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

NAT

Harry Rutherford Jackman

National Government

Mr. JACKMAN:

A great many of these annuities have been sold on the understanding that no income tax would be payable. A man could pay in only one dollar, as the minister has suggested, and then increase the annuity. If the clause stating that such annuity will be free from income tax does not appear in the contract itself, it certainly did appear in some of the printed matter produced by the agent when the annuity was sold. I am not holding a brief for any person who pays in a nominal sum in order to obtain a larger annuity later on, but the fact is that government agents did tell these people that if they took out small contracts they had the right to increase them up to a maximum of $1,200.

Topic:   INCOME WAR TAX ACT
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