Winnipeg Free Press

Winnipeg Free Press (Newspaper) - March 21, 1956, Winnipeg, Manitoba Winnipeg free press. Wednesday. March 21, 195s Page 7 tax change portion of budget speech Harris text on provisions visions for profit sharing plans will be established satisfactory basis. On a pretty j951. It is proposed therefore key Ottawa following this May be a very co a partial text of the tax change sum. T portion of f finance minister Wai All in All and after making due Over the past year my colleague to Amend the Law and regulations ithe minister of National to ensure that the intent of land i have Given 1951 amendment shall govern thought to the general require for the intervening period and for the future. This amendment will not deprive any taxpayer of his rights under the supreme court decision for the years prior to 1951. In recent months there have i ments to which pension plans must i conform in order to establish the right of tax deductibility for con distributions. We have concluded that Naira it is desirable to revise the Blue Book which contains the general Are in sufficiently Clear terms to notice that no claims for refunds support assessments made since arising out of tax reductions in respect of goods on which tax has been paid will be entertained. Magazines for several years past the pub Lishers of Canadian magazines have made representations to the government regarding the increasing inroads of magazines from abroad both into their circulation in Canada and also into their sales of advertising. Regarding pension been a frequent references to foreign problem for some time and we have decided that in this Field very exceptional measures can be justified measures that certainly could not be justified in connection with any Ordinary line of business or Commerce. The publication and circulation of magazines by canadians for canadians telling about canadians and what they Are doing and what they have to sell seems to us a Basic and essential thread Ter Harris budget speech allowance both for further a or. Before i turn to the question of mantaries and i cannot. P and control of Cana to a How we hould our a soon of with some care the provisions a certain Tim in the coming year in the coming of i mils m i tested that a certain Fatui we have been Able to help them in the fabric of our National life. So that those concerned May have time to adapt their affairs to it. The tax will apply to All special editions whether printed in Canada or abroad in English or in French. This concludes my review of our proposed tax and i can now summarize my budget Ary position. The total reductions Iri taxes i am recommending to the House amount to Barbershop quartets to sing april 7 Barbershop quartets will have i their Day at the playhouse april 7 when the eighth annual song Parade is staged by the Winnipeg chapter for the society for the preservation and encouragement of Barbershop quartet singing in America inc. Llu re Are two other matters in the year fir id if finance to which i should. The feature of la Small extent by some re and i now am talking not merely distribution of routine the magazines that Deal to a advertising. Nevertheless their or lesser extent with Broad program of Public works u of the trustees in investing funds under their administration and other capital items old we Nave studied the Urgen our tax Law May be discouraging position has declined. And economic affairs the foreign owner from allowing number of Canadian also about the magazines Canadian participation in his been abandoned and others circulate among housewives and Temprise. Under our Law the had to reduce the i representations made to us for the v i run some of these . Of or residents on dividends from Cana like to make reference. Coerce Natae Damper cent. Howe Emhe tax Active in which purely Canadian Theva St l5 items Are Down by nearly to govern their own invest members of and my expected revenues proceeds this year will go to the coming year will be a four bed room in the 000.000 and my prospective children s Hospital now under plus i should again construction. 2 House that in figures the program will feature Quad magnitudes there will i lets from Brandon. Portage la some uncertainty Kenora Fargo. N.d., and and that a variation i Winnipeg. Featured will be the in As one per cent chowders from London ont., in either direction the Gay nineties quartet from to Hosp a blur rare Nura. Businessmen and Trade associations. Indeed howl our is lmonlevide0i and the Chi n cagians from Chicago. Is Only five per cent on a f foreign magazines fr0m abroad have could we contemplate a situation Ile to such an extent that did not exist i l 000 from he previous year l p Tali vestments5 he j corporation in it owns All rom continuation of Canadian the government would be very ?10hame ,0 in t heir own West which a11 Circum magazines appears to be in Jeo reluctant to interfere with the rights p n traditional imports of that theatre a More the by the department of nor Ticu unit affairs and National re i sources and for the trans Canada it policies in the right of the 000 societies with Over the plans under their administration. Stances have full. Voting rights already something like that the tax position of the foreign company is not adversely affect Mern Bers and close to Ana Lor me m f the professions and Ted by issuing or Phouc Parucki assets. Members savings and Highway Are More than offset by others affected b Pati Orl in Canada other kinds of s in these credit unions reductions. In recent exchequer Collet in the Canadian company. To and Loans to isma expenditures Tor much ruled out a deduction for this general provision in of urls deposits Reed s500.i members . Poses the government is seeking Ito reduce the Strain on the econ clearly the credit Union or resulting from the very Large operative savings society is h Ina a most useful and rapidly in hath j re Andins role in our i. We Are getting a number of requests in treat credit convention expenses will Law to which i have just re interested in learning that the feared has in Many cases been will be amended to allow for i modified by tax treaties with Var countries in recent years. Of the magazines read in Canada Are not Canadian and the proportion has been creeping ominously upward. Competition from abroad takes two forms. First we have what our i May be described As Normal in and Onward the to make during As i have projected revenues Luno Anu us Viii Tut Feuu Uruu i i jus com pcs m Tuu. P for two conventions example in our treaties with dually in Canada. Sweden Ireland and Denmark company May secure the prefer action which Calls for some Amend ant red Loans. May 1 Kinnke it Clear that the Federal government lion or desire to intervene in the so neral Field of co operative to societies but we Are prepared to although ror reasons just n the t possible for me to re tax that act and a the sit Down with interested groups come tax this. To discuss under what Circum Stan changes in pcs or or of Tyllere we mentions Are currently Active in Brief the court j South Africa. Australia the Netherlands and Germany. By amendment to our treaty the income regulations there an Oil producer was entitled to have the so called As they were in 1949 and with the United states six years ago the percentage ownership required for the five per cent rate ports scores of magazines nor Mally on Sale in London Paris or new York Are brought in and Normal and traditional imports of Ordinary magazines into our coun try but the special editions constitute a very special problem. They Are relatively new arrivals on the scene. Each is essentially a by product of some Magazine published abroad and being a by product its costs of production Are Well below the costs of a comparable purely Canadian a see More of Europe for driving your own Renault ?995, 4 door Sedan Orlf sold in Canada. Second in a few gazing. It uses its advantage not cases the publisher of a Maga Ionly to enlarge its circulation but. Zine abroad has arranged to More serious to Ca on Sale in Canada an edition Nadian publishers to sell its and Ive per cent on Divi of his Magazine that is quite Simi i ver Tising services thus diverting As More than 50 per Lar to the Magazine he Sells from Canadian publishing his Home Market but not Ridenti houses. In recent years this i Cal with it. This special version has become very sub Stan will usually differ from the edition both because it prints a accordingly decided to few pages of Reading mater about Canada and also because Sells some pages often a of 20 per cent and will be put a special excise tax on these cause it special editions. It will be at the i be u lip inn nine Tiv allowance calculated on an i divid was reduced from 100 per cent is and conditions we could f Juan Well basis rather than on 95 per cent. For some time Ray extend to is Mem which employers this decision has affected the Agenda for discussion with the us fits with employ basis in jaw for the policy states administration and i i a in mime under deferred has been followed for the Oil in Ward the end of last year the May i repeat that it is not Ouri s of ans during the course of its question of a further re cipro Ric sire to extend our supervision the Sufung from Leal lowering of the percentage portfolio transactions will be exp in regulations requirement was pro the taxable had been in Force during the years j posed. I have reason to Hope that element in covered by the Home Oil proposal will be acceptable Toi Many pages to Canadian advertisers. We have been considering this levied on All revenues they receive from advertising. It will not come into effect until january 1, 1957 car or re sell it Here is the lowest Cost Bris Way to Sec Brand new Renault delivered when you arrive abroad. 4cv 4-door, 4-passenger Sedan costs Only s995, Fob Paris factory. There Are 7 of her models to j1995. Renault arranges License insurance ail red tape for you. After trip you la he tempted to take your 4cv Home. Renault will help you or Ranore shipment. Or. As an alternate plan Renault France will arrange for repurchase of your car at a fixed depreciation rate. You re cover most Cost in dollars. Write or see the Renault Al Renault France direct factory 1477 Mountain St., Montreal 15 open to them. I Hope t such discussions Shortb. In this Field unless and Only to the extent that credit unions May de calculating sire to participate in these gov portion the Divide Ltd Ern ment activities. He income allocated to a member Kvare amended by governor in the United states and that an _ Iii be recognized for tax credit Council with a View to establish amendment to our tax convention j Rode in i purposes. I 11" greater Legal certainty for in due course be effected. The second matter is our also there will be on which taxpayers in the other changes in the income tax la inns affecting Trade in of tax liability for the first three Industry were being and had m act Are contemplated will late in 1h3i. When the United years on amounts allocated to a ithe past been assessed. _ Espia Jnet upon introduction of kingdom anal Canada went off the member of a plan if the Union i the reasons for judgment Given amending Bill. . It i i tin not i to t in fill o customs Tariff the resolutions which i am placing before the House tonight con Tain As usual some Tariff changes. These Are rather fewer than in recent years. Only one change is of sufficient general interest to warrant men t Ion at this time. This relates to parts for agricultural Machin Lery and equipment. Government j Standard the Export of right to receive the court in the Home Oil Case was made subject to a system of amounts has not been assured to have created some uncertainty licensing administered by the the member within this period to whether the present Law and minister of finance. At the same with these changes our tax pro regulations As amended in 1951 time arrangements were made Canadian Gold producers All newly mined Canadian Gold was turned Over to the Royal Canadian mint and the mint be i came in effect the agent of the Gold mines. In 1946 and 1947. The International monetary fund of which we All curbs on Gold go option left on subsidy l i Are an Active member became1, Ottawa the first1 and hold it on the possibility that policy has of course been that increasingly concerned with the time in a Quarter Century Heithe official Price of Gold is in a the parts like the machinery and j serious extent to which _ Gold 2overnment tuesday night re ease la equipment should enter Ca i a 5t 6 my. Throughout the world was being diverted into private hoards. In government tuesday night re moved All restrictions on the Sale 194s. In line with the in and Export of sold opening the Ierna Linnal monetary fund s pol Way for creation of a Canadian which we fully supported. Maruel for the yellow Metal. Discouraging hoarding the gov finance minister inn. Ern ment pave notice tha Gold Annolla Riccy in his parted into Canada after than i sex 1 this Pha sized there Are no indications that an increase is Likely in the immediate future. Gold exports were placed under government control in 1931 when Britain and Canada went off the Standard. The Canadian mint became the official Nada duty free. However certain judicial decisions by the Tariff. Board relating to the wording of particular Tariff items have re suited in important changes in Tariff classification practices and the scope of duty free entry has been substantially narrowed. This Date would not he granted an w a result has been port licence. of brought to my attention by Many interested persons and organize i tons. The action taken tonight is o Rake Canada and War the International Mon St government permit. Pre Earv fund became increasingly Cinat As a hav a without government permit. Pre teary fund became increasingly a piously no Gold could be shipped concerned Over the diversion of in 1951 the fund decided that i Holly a Federal licence into private hoards and. In from using in. Was impracticable to expect uniformity in the measures taken by members in respect of their Gold transactions. Its control Over and As world wide monetary con d h time 1 or example in Tsoi Lowed Canadian Gold producers. For Gold is currently not much however Canadian mines which 1948. Canada decided to prevent elect to sell on this free Market hoarders from using Canada As a will no longer be eligible for gov-1 Haven by blocking exports of Gold Ern ment subsidies. These subsidies that had been imported. Wimp Mem Rii a Tun totalling about a year however in 1951 the fund de imn inv. Clue to expire next december cited it was no longer practicable covers fire Brick. Then if ivc been liberalized from time Toj unless renewed. J to expect member countries to Board s program allowed i to Ime for example in 1951 we Al since the world s free Market maintain uniformity Over Gold con think of referring it Mil. I i apr Orn of i Riff Tymo rpm stir tool and the Federal government allowed Gold to be exported under rigid regulation. Under certain conditions to than the official Price of old in the world markets. An ounce u. E. Offi in 1933 we liberalized the con dais said it docs not appear Likely which we would subsidized mines would be leasehold fur Industrial uses and eager to switch to free sales and last May we undertook to Grant lose Federal Aid. Export licences for Gold imported j however at least one of the into or purchased in Canada mines operates without sub i i 1 for account of and May Benefit from the Cluj ave Central Banks and official internal i move. If free Market prices should Linnal financial institutions. Rise. Other mines might also find we now propose to remove All re it More beneficial to switch to the mailing restrictions in this Field. Free Market. Tomorrow. Wednesday increase refused both residents and non residents of Canada will be free to buy sold hat official Price of under priced and i tax slapped jewelry intended fully to restore duty free i entry in this important Field. I i have two or three new Tariff j Board references in mind for the coming year. One covers Zinc and manufactures of Zinc another the Ould a Tariff items relating to r i a no the relations Umler the Gold group o tiie manufacture and Assembly of radio and television sets. It is Clear that the Tariff Board will continue to a heavy Bur Den. This Point has been brought to my attention both by the chair Man of the Board itself and also by others concerned with the Board s work. Accordingly it is cur intention to enlarge the membership of the Board from three to five later in this session i shall introduce a Bill for this Pur Ottawa up a mine operators have Long main i excise tax will be placed in a i now turn from tariffs to sex Gold pegged at the mediately on cheap costume jew Cise taxes. I am unable to of s35 since 1934. Is Purv. I Narp minister inn. Walter port act requiring an Export since 1934, is be in it requiring a Export the Ulli Ted states. The budget speech have been suspended mines main by scr has Elry. Finance minister Hon. Walter Harris said tuesday night in his world s main Buver has refused agreeing to forego Aid under the Price saving such emergency Gold mining Assis a a be Tance act will be Able to sell their old wherever they desire subject the government five years ago merely to reporting their product to allow Canadian mines to a n Iho Ron Artmonia so p to free markets overseas in Tion and sales to the department of finance. Tax policy 1 come now to the question hip Der permit. But with the free the tax will apply on articles of Ivory Coral Jade Semi precious stones and the like where the manufacturer s Selling Price is less than each and on jewelry Cut glassware or China when the sell ing Price is less than 50 cents an appropriate tax policy for thence native. Coming year Market Price dropping towards i official Price and with the costs the excise tax act up to now of transporting the Gold overseas. I Kas exempted these Low Price items because it was originally imposed at the retail level and the government wanted to free retail ers from collecting the tax on a much exporting in now Canadian Gold can be of i said earlier i am now to foreigners or canadians ing a Gross National product of for safekeeping in Canada with Host of Small items about for 1956, and the Assurance that it can be ex-1 however the tax now is imposed on that basis 1 would expect our ported in the future without gov present tax Structure to produce Ern ment interference. This May revenues of i save shipping costs and possibly at the manufacturer s level and. During the coming months our attract buyers to Canada inflow of corporation income tax canadians also May buy receipts will be abnormally High As corporations catch up on their 1955 tax liability and at the same time Are paying currently on a much higher base while i expect this Large in i Vav crease in Revenue we also have to face very considerable increases in expenditure. The main Esti mates tabled in january show an increase in expenditure of 000 or. Harris said the exemption fundamental changes in the Struc is subject to therefore Ture of the Law. These we shall the Law exempting tax on these have to consider carefully. I think s will be repealed. He most i can say at this time Harris also announced that is that we Are adopting some of propose any reduction in the Gen eral rate of sales tax or in the Standard level of 10 per Cen for the special excise taxes. A year ago i told the House of our intention to appoint a com Mittee to study various aspects of the excise tax act. This has been done and i am tabling at this time a copy of the committee s report. The committee s report is being Given careful study by the depart ments concerned. I am unable to say at the moment How far the recommendations made by the committee will find a place in this year s act. Some of the recommendations involve some rather assumes or. The 10-per-cent excise tax on items such As jewelry or China brought into Canada As part of an Immi Grant s effects or for display in museums or schools will be re moved. They Are already exempt from the sales tax. Oppose Ottawa up first Tion comment i have previously informed minister Hon. Walter har House that some increases in Sal a j. Bud get there won t be an Aries and rates of pay in the pub lie service Are about due. 1 this yet say what this will Cost but j m Macdonnell. Progressive when 1 Point out that each per cent increase across the Board i conservative financial critic in civil salaries and wages Don t think there am t gom to add about to our no election this i dilutes next year including the rejoined Harris to Sll Rej what s in a name asked Shakespeare required Matching Lump sum pay ment into the sniper annulation a the honorable member for Green j Nuu the House will realize that Wood or. Macdonnell is a night a waiter har sabotage says a Man Washington special sabotage is a new description coined by Fri director j. Edgar Hoover to describe knowing or Unknow ing communist sympathizers who persist in calling Fri informants or. Hoover quotes Webster As saying informer is often informant never a term of opprobrium the committee s recommendations for greater simplicity and certainly through making certain additions to the exemption list. These along with some other additions will be found in the Resolution which i shall be tabling at the conclusion of this statement. The most important additional exemptions arise out of a broaden ing of the definitions of building materials and of production goods. It is estimated that the total reduction in taxes through these additions to the exemption sche Dule will amount to about 000 in the forthcoming fiscal As usual it will be provided that the above commodity tax changes will be effective from Midnight tonight tuesday in accordance with Standard practice my col league the minister of National Revenue has asked me to give five Ros cake mixes cakes we made Fine cake mixes for 6 years without offering a single package Jar Sale Why we wanted to give you mixes that would maintain five roses As the most respected name in baking cake mixes that were far and away Superior to any you d tried before Kow they re Here to give you cakes that Are wonderfully Light and tender yet have that Rich moist texture that comes Only from fresh Esse As does in your Best recipe cakes try the Only cake mix that meets your own standards of really Good cake. 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