May 26, 1943 (19th Parliament, 4th Session)

Mr. ILSLEY:

The value of United Kingdom residents' holdings of Canadian securities varies from day to day in accordance with fluctuations in market prices. The only official information available to the Canadian government relates to United Kingdom residents' holdings of Canadian securities denominated or payable solely or optionally in Canadian dollars. These include a relatively small amount of securities for which the principal market is in the United Kingdom.
In addition to securities denominated or payable solely or optionally in Canadian dollars, residents of the United Kingdom also own substantial amounts of Canadian securi-

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ties denominated' ot payable solely in sterling. The Canadian government has no official information regarding the amounts of securities so held, but an estimate has been made. This estimate is necessarily rough and must be treated with reserve.
United Kingdom residents' holdings of Canadian securities of the two types referred to above were valued towards the end of 1942 at market prices prevailing at that time, and the figures set out below have been adjusted to allow for reductions in United Kingdom residents' holdings of these securities up
to May 1, 1943. The figures given below include only Canadian securities for which a market price is obtainable in Canada or the United Kingdom and do not include direct investments of United Kingdom corporations in subsidiary companies or branches in Canada.
Subject to the above qualifications, and to the further necessary qualifications that the market value of large holdings at any particular date does not necessarily indicate what value would be realized if such holdings were liquidated, the answer to questions 1-3 is as follows:
Value of U.K. holdings of Canadian securities denominated or payable optionally or solely in Canadian dollars, at market prices prevailing near the end of 1942 (in millions of dollars)
Estimated value of U.K. holdings of Canadian securities denominated or payable solely in sterling at market prices prevailing near the end of 1942
(in millions of pounds sterling)
1. All Canadian securities
107-7
2. Dominion government bonds and debentures nil
Provincial and municipal government
bonds and debentures 69-3
nil
3. (a)
(b)
(c)
(d)
(e)
Bonds and stocks of Canadian Pacific
Rail wav and/or subsidiaries 39-8 57-2Stocks of Hudson's Bay Company and/or subsidiaries nil 5-1Stocks of Canadian Industries Limited and/or subsidiaries 47-9 nilBonds and stocks of Dominion Textiles Limited and/or subsidiaries 1-0 nil
Lever Brothers Limited is a wholly-owned subsidiary of Lever Brothers and Unilever, Ltd., a United Kingdom corporation. The stock of the Canadian company is not bought and sold on a stock exchange and its market value is therefore not ascertainable.
(f) Courtaulds (Canada) Limited is a wholly-owned subsidiary of Courtaulds Limited, a United Kingdom corporation. The stock of the Canadian company is not bought and sold on a stock exchange and its market value is therefore not ascertainable.
4. All corporations and joint stock companies resident or carrying on business in Canada are subject to corporation income tax and excess profits tax on their Canadian profits.
All persons (whether individuals or corporations) who are resident outside of Canada are subject to an income tax of fifteen per cent in respect of dividends received from Canadian debtors. This tax does not apply, however, if the Canadian- debtor is a wholly-owned subsidiary of a parent company resident outside of Canada.
5. Great Britain and Northern Ireland do not levy a corporation income tax, but corporations are required to pay tax on profits when distributed, the shareholder being entitled to take credit for his proportion against his personal income tax liability. Persons (whether corporations or individuals) carrying on business may be subject to excess profits tax, depending upon volume of profits earned in the taxation year as compared with standard profits.
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