The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

- 7 - - .' _ . FEBRUARY l . and net income for the purposes of this section shall be determined in ee n I tne manner provided by subsections ' p [ 2, 4 and 5, of section 14 in so far as l the definition of net income therein l ( applies to the income from the oper- I n Added Reven . ation of hotels in Ontario." l u e; I t Another amendment provides: l "Every tax and penalty imposed by. V . this act on an incorporated com-i Ot pany owning, operating or using 3i ers a In railway shall be a special lien out l the property of such incorporated! _ I company in priority to every claim.' . . f . I th "T; """t it ' b _ privilege, lien or encumbrance.l q n au ort a Ive quar ers l IS e- 1 whether heretofore or hereafter i LOVICS Retroactive 1/2'f.,'.111.ei.l.ng,e/t1' in the corpora-' created of every person and the} Under Conant Bill .l//l,.')s .23 all"; 'lin'),'yiai,','".,io1f'fii.i' :33; '),',yii,i,,eaiCirlt,)', 21.11.1392? q conditions w ... t. "c . . "'.' .'. . ' . . . ' Making Them 5 P.C. burn has omit-Le ligamthpidig'; 'gt1iti/"UrrvaenrtTo,et :gmgpsgzz; --_------ in sy.-sio.tt and .1" will inform Crown. or by want of tTiis',iraTiori.v'" SURTAX AS WELL' Liiefitmiifai"i.'i'"i:"§..'"i£i"'i§§i "anthracite the provistorvs ______ the outbreak of war and a drop in I %;xsiittlo?93§0 /e, 11,Le'/,'gg,tiit)ss,l, . ' a ' a _ . ' I ' . o , ' . l Increases in the Corporations Tax 'J,"di'l,u/iuvTavs1ri,tt'ns.gJ;l'ii'.:, mi] icetiiigzmim of thet fiT',ottilsioancst Ta: . Act. contained in amendments in- this year would have been found! 1"et'd'j'ivt'idi'ft1'fdh'lidflTl.7saunJ1. troduced ill the Legislature yestcr- to ho .t'orrel l section 1 of Section 14 and Section day. will enable Premier Hepburn mi1Jt.1iiei1eilue.Ct, ii,',',e.,',",ihhh,; sP1rot. 15 of the act, as amended by this to announce iii his budget speech f)00.000 #f,f,', (0:0? tri F1? fy. Wd, act, shall. for fiscal years which end- next Thursday that the Govern- "01h", this amopu '? "in." $052131 ed on and after Jan. I, 1939, and up ment expects to have a surplus at d isli, on tl l "tls I"? ."e'di'fi to and including Oct. 31, 1939, be the close of the fiscal year ending e f I)', l l I, .10 mom)?" If'..".),"'.??'; payable within thirty days of the March 31. 1941. gm)" "1,s'toJrt,1v11,"vnrta/t,y,'; intro-1 day upon which this act comes into The tax on capital employed by 11T/,.dti"n'1] ay t':vc)trteo'iyiv,fot,.,',1ir form. and the provisions of Section corporations remains as at present. bilih" tho 'ls)dQ/'n"r,1ie1nn/1,edi1 V/lit?; l 29 and Subsections 10 and 11 of Sec- but the bill provides for an increase an additional 58000000 . . revenue l tion 21 of the Corporations Tax Act, from 2 per cent to 5 per cent in from this some; '1' JI 90 e i 1939, shall,with respect to the pay-, the tax on net income payable by cent of it_will flow Ir,'; finiwinriaii ment of such taxes imposed for fiscal: ordinary incorporated companies. when in the fiscal If/ endin i years which ended f"? and between; and a similar increase in the tax March 31 1941 l g? such dates and ot Cmte.r.e.st..tlere.on, calculated on the net income de- . It is helievéd Premier He burn' apply .as though the thirtieth day rived from the operation of hotels and Jfreiiiiiiri. officials l' the following the day upon which this by railway companies. In addition. o inion that ihe .021]. ghee?" likely act comes into forte. were lhe last! there is a surtax ot 25 per cent on it? prove a difficalt one fir Coven:- of the month which ends fourl taxes now payable by banks. insur- ment bodies and that it is essential [ months from the close ot each of Inge companies. express companies therefore h), tho "i'ioiiei.i,riiiiii h; su/i1if.f,sf,1.Cyisr, ei t f .n car companies. 1 . _.,' _ . ac s' a . .om lllO (yrce on) The bill also contains a clause "a; 1,.,ee,'dfif,nBur"iuirrheey 2it the day upon which it receives Royal : dealing with taxes and penalties im. ldavs Oh "We belief that the war is asff,,rl . . . ' posed by the ttct upon railway com- 'almmt certain to break out in all the pmvmom of Sections 1,.2, parties. and renders them a special [m hi". in the spring and thus latrc and 3 shall ayly to companies In' lien against the property ot the iii Governments manv added hefpom respect ot all Rival Scars onding m . company. 'sibiliiies TheAPrcmier is likely to 19.39 and subsequent {bu-n yparri. l In his budget speech. Premier lahude l', the im gshy}. t" The pr"lslon5 ot. Section 4 shall He burn in his ca ttcity as P " " l . ' . post l I 3 o pre- apply to companies m respect of all; . p ' . p . rm n 'dictlng with anv certainty what may "., . . ' . _ [ cial Treasurer. is expected to an- ihahpeh in tt war. year hm that with fiscal 393,'5 onding 1}} 1940 and sub-; pounce a deficit on the present additional /ia'iisi's'"ii'tiiiyei/iirroUiii sequent fiscalyears. I fiscal year's operations ot $450,000 the Corporations Tax Act amend- Last year he budgeted for a surplus merits. and other tax increases, the of 3150'000' but the war and other Treasury Department will be in a factors. notably a sharp falling off positiondo budget for a surplus. . In revenue from liquor. gasoline The bill sets forth that the new f',.',',',',,,',,",:,';',','.'?,',',' ddtutlesd upset the. imposts are to apply to all fiscal p ure n urne an expect vcars which ended on or after Jan. ed surplus into . comparatively 1 1939. up to and including Oct. 31, small deficit. i 1939. and to be payable within' Ordinary Revenue for Relief. , thirty days of the act coming into' Another point which the Premier' force. Any bill. after receiving third t will no doubt stress in his budget reading. may he brought into force; address is that Ontario continues hy being given Royal assent. _ to finance its unemployment relief The bill provides: "Every incor- contributions out. of ordinary rev- porated company upon which taxes enue instead of making it a capital are imposed hy sections 3 to 9 of' expenditure. lt is expected the the Corporation's Tax Act shall for Province will spend less in the on. every fiscal year of such company _ suing fiscal year because of the pay a further tax equal to 25 per lightening of the unemployment centum of the taxes imposed there- problem, due to war conditions. by upon such incorporated com- The increased revenue from the pany." , corporations tax will become avail. 5 Per Cent Provided. l mIt2Lt.._1tt the province after April 30. In addition to the taxes imposed: corporations having four months' i in sections 10 and 12 of the act "and ( - in which to make the pay- ,save as in this section otherwise merits. Only about 2 or 3 per cent l 1,providvd, every incorporated com- of the revenue will be available for I "any which has its head or other the present fiscal year. which endsl ,Ollit'e in Ontario or which holds March 31 next. ', assets in Ontario, or which trans- . Most corporations follow the cal-', acts business in Ontario, shall tor endar year which ends Dee. 31, and ' iovery fiscal year of such company the bill m"tt provision for those I pay a tax of 5 per centum calculated companies which end their fiscal iupon the net income of the incor- year without regard to the calendar. i pom..." company." In making the bill rtt.roayt.iye .to l Another clause says'. "In addition 1939, the Government IN nllowi.ntr to the taxes imposed by sections 5. the same procedure as the Domin- 11 and 13. any incorporated com- ion, .whlch taxes on the previous pally owning, operating or using a ""3 income. Hallway which also operates or uses a hotel or hotels in Ontario shall 'pay a tax ot 5 per cent, calculated .on the net income derived from the ioperation of such hotel or hotels