NO TAX INCREASES

Timaru Herald, Volume CLVI, Issue 22934, 3 July 1944, Page 6

NO TAX INCREASES

Revisions In Canada OTTAWA. June 27. The Minister of Finance, the Hon. J. L. Ilsley, announced that the compulsory savings portion of the Canadian income tax will be discontinued, and there will be no tax increases. Mr Ilsley said that the suspension of compulsory savings did not mean a reduced need of saving. Actually the need was greater, but compulsory savings were looked 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, who were previously uncovered. A revision of corporation and excess profits tax provides that 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. Provision will also be made for rapid depreciation of new assets for tax purposes. Mr Ilsley also announced the repeal of the exchange restriction in 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 the importation of a large number of articles.