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W Muck " . _ "at. _er: c- w---"---' ' . . 'U~ .. ' ' Ontario Can T . f Tax Pact at An Tim Fl b I f y I e, o . . , . Premier Says Neither Legislature Nor Hydro I . . I System May Initiate Policies Contrary to . . Wishes of Federal Government Due War Act , . irc. words, we have that much to the ' tal',',.':':.')',' lltpb'uin told the'Leg'i- good. It does not cntcr tho picture, cation in corporations and personal ure yesterday at second reading and we are not accountable to the tillcome taxes was "commonsense in Of the tax transfer bill that the Dominion tor it." wvartinze." Province has practically no control "I; anYISiIICOI'O difference arises l ("01332115 _,11at, y"11i"'sii.e),ye, had (we its . l.., . nc,' We ate tie right to terminate the Icon- rot ute lo t e status of a "mg"! 'crl2toa.2liitc?iii,,. ':/'//,c',Tii' 2§reomontf" asked Mr. Macaulay. \giglittfd {county council," Mr. Frost for them by the Ottawa Govern- J?:; that IS so: was the reply. if" I,.,, .h"\° tell that many county ment. Even a Provinciallv owned Well. that lo" a safeguard," ob- 1'tl,rl,'diiiC'.i//,"2yss',. might be intro- system such as Hydro could not 50 served Mr. Macaulay. Ilaliheti'th benefit into the Legig. made subject to legislation without Not it Prepayment, Hepburn Says. Ill': C,', . the consent of the Dominion. ho Mr. Hepburn declared the $2.896.- i "'apeflintd Hepburn Offer. said. This Silllallon Witt; ascribed to 000 itom was not a "prepayment in I Pre.miet Hepburn declared that, at the wide powcrs given tho GOVN'H- arr sense of the word." Ir the ':tho lirnc of 1he Sirois Report Con- merit under the War Measures Art. transfer of taxing authority. he said. 't'eience It Ottawa, he had suggested The debate on second reading of a cpeL-ific date must be set from to lltioom,inj.on that the Ontario the xalidatittp, hill took exactly which the Federal collection must "mm"m' Iuties 'collection branch fifty-five minutow. Leopold Ma- start. Personal income tax is pav- could (tum-lion for both Govern- raulay, Acting Opposition Leader. able hr the calendar vear and the moms. We offered the full services spoke briefly on the subiect. Georto provm'cc has not collected any since of W" department to act with suc- s. Henry. former. Conservative Jan. I. Nor has it collected any version duties as the Federal branch rhcnurr. and L. M Frost, Con. corporation income tax since Jan. 1. c.?llc.'cu'd Jncome tax for both juris- st'rvatlvo meniner for 1r'itoria, arao "Had we not entered into the "Tum" . . dealt with various aspects of the agreement. these revenues would y,oy..tyrt': the I?.ominion Govern- b.2l. Th? sugars) Wits pu' for., have been collected and the 10 pet" 11.1?" cid not see fit to take advan- tvittul li\ Mr. Frost that the Pints (Phi is a fair estimate of the rev. 1?": 0'! this 91:113. I agree entirely itvre mould be permitted to use its enues which would have been he- n;:9\'_": .dlrliplllu'illpn has caused un- collm-tion machinery for all HIC- tween Jan. 1 and the and of the tis. 'd'f,1'is,Y),' t if" llt Pf.. s1llly,,of (onion dtttlos in~tezid of hitting cal year. March M. There is notiv Ci 9;}, Us "i/S?,'. still stands. riurlcatson by both Dominion and ing sinister in it and there is not Eat-:0 {Ck . .h Gt"). Conservative. Province. an attempt on the part of this Gov- Add i (:1. t fused tho llepburn Mr. Miwcuuluy titlesllOllo'd whethi ernment to bolster up its budget," fly11lilfJ', gm] cull.,". ffflvyyyyt. or the 52.896.0th which the Federal he said. 'sl Id 21are l .y.f, 'meWUON that it Goterumrnt i, to pay Ontario br- Mr. Frost declared that. the cen- :32] in"? "so. ;-mleirefl the per- {are Match CII. 1942.. was' not a pre- tring of tax collection authority in 'not J?) we. i" "ll', y.y/,.e,1oy.ld . . lie sue ested that it was ' ' T tttteased t'orporatlon tax Pyle, " " ' the Federal Government was not loves to the present rate. A sweetener Mr the Governments an "unmixed evil." He said: "It is I "In tne last right years the Gov- ,','Jed,f'ii; if}???.11Sid'fé'.-'fi$.-E...'Zi§i one .ot !he ti.rtt "PS to ..teif. the "new has we l? and on in in- C . . p Th A ti C c, ... tiv duplication with which this COUNT! creasing taxation. -lie Government 13:32; ""ch cth'if "Eggmita I": 2t been cursed for seventy years. imposed the personal income tax, neared m him that double taxation. Lawyers Get Paid Twice. witch I opposed. and still oppose. which the hill aimed to eliminate. He SttW in the move one way in I! m [Io/ a Provincial tax:. f??yy,t appeared to exist. The Province which the '.'l.omieburdened .taxpas1'rl' walk/{e Mame It 'ahn'it't',tiTi,11'in, tax. was taking the $2,896,000 into the could be relieved of spending a "lot tsal .1? etnuhan-' m 009 "11M: .his present fiscal year. It appeared to of money." and he suggested, as a 'lt..'..rft1t,1f'f, , t e "1'99"?"0" "If? he a prepayment. he declared. forward step, that now the Federal sh".' tl al, m the (inal analysis, ' ' . Government has entered the succes- while tnany fPmpi.'n"l?' may h.av.e Can Terminate Agreement. ston duties field that the Ontario ther head offices in Ontario, their Attorney-General Conant expflairn- , duties collection ' machinery "which revenues were idelrived from the Do- ed that during the first year a t a; a . . . . . ' mltllon as a wto c. Agreement. from April I, 1941. 'o :2-caicnfttgrtwlzlteoruIgasbem'tlllt'etmgggi .in 1933. said Mr. Henry. corpora- March 31. 1042. the Province will collection source in Ontario and thati tlor tay. revenues amounted to $7,- have collected and will retain a the Dominion's share should be) f00r000. While a normal Increase in substantial amount from corpora- handed over to the Dominion at prev business revenues would account tion and income taxes. arranged intervals for some of the current Increase in "From the amount that would Thea one collection source would tax revenues, he charged that the otherwise he payable by the Do-, eliminate one set of returrs and great part of that. increase was de- . . . i I one . . minion to the Provinte for the first l sct of valuations Under the pres- rived from the increased rates year. these amounts so collected by: em duplication declared Mr Fm}! charged by the Government. the Province from the taxpayersia barrister "the fiiii.iii.sTe't paid -----r.r--- are to be deducted." said M'""twice" ' .' . 1lorttr.tt. "For example. although ! "Millions of dollars are going down the ti'cutcs are purely hypothetical. l the drain" in the duplicat:on of col- we may collect "50000.00 from i lection. he claimed. and he stressed they sources durintt the fiscal year| that elimination of collection dupli- _ ending March 31. 1942. In that case ------- _ the Dominion would pay us the iriT.l ance. or 83.964039. with respect tot that year. Then next year we may: collect this further Sl.964039 from the taxpayer. and it we do so, or whatever we may collect. will be de- ducted from the 828.964.039 payable, by the Dominion to Ontario next year. "There is, however. one important provision," continued the Attorney- General. "Anything that we may / collect from the taxpayers after April 1. 1941.oin excess of the stipu- lated figure, t28,9640C9, is retained hy the Province and is not deduct. lble bv the Dominion. In other