Easier Canadian Budget

Northern Advocate, 29 June 1944, Page 2

Easier Canadian Budget

OTTAWA. June 27

The Finance Minister (Mr Ilsley) announced that the compulsory savings portion of the Canadian income lax will be discontinued and there will bo no tax increases. Mr Ilsley said suspension of compulsory savings did not mean a reduced need of saving. Actually the need was greater, but compulsory savings were locked upon as a tax rather than refundable amounts. This .was having an effect on production at a time when full production was sorely needed. Other taxation revisions announced included provision that in-laws may qualify as dependent relatives for income tax purposes. Tax allowances for children will include all children dependent, on the taxpayer, including illegitimate children previously uncovered. Revision of the corporation and excess profits tax provide tlvst losses in any year may be charged back one year or forward three years. For corporation or excess profits taxes, business concerns will be granted double depreciation on new capital investments after a certain date. Revision is also made for rapid depreciation on new assets for tax purposes.

Mr Ilsley also announced repeal of the exchange restriction on the import of non-essential goods from the United States because of the great improvement in the foreign exchange position, thus removing the prohibition on importation of a large number of articles.