R.S.B.C. 1924, c. 249.

[Assented to 19th December, 1925.]

H

IS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, en acts as follows:

1. This Act may be cited as the "Special Surveys Act Amendment short title. Act, 1925."

2. Section 2 of the "Special Surveys Act," being chapter 249 of Amends s. 2. the "Revised Statutes of British Columbia, 1924," is amended by adding to the definition of "registered" the words "but when used with respect to the ownership of lands held by the Crown includes the Crown whether so registered or not."

"registered" in

3. Said chapter 249 is amended by inserting the word "registered" Insertion of word before the word "owners" where the latter word occurs in section ss. 3, 4, 5, 11, 12, 3, clause (h); in section 4, subsection (1), line 12, and subsection 13, 14, 26, and 27. (2), line 11; in section 5, line 3; in section 11, line 22; in section 12, line 3; in section 27, lines 3, 4, and 10; and by substituting the words a registered owner for the words "an owner" where the latter words occur in section 13, line 10; and by inserting the word "registered" before the word "owner" where the latter word occurs in section 14, lines 6 and 9; in section 26, clause (e), line 3; and in section 27, lines 8, 9, 11, and 13.

66

4. The Order of the Lieutenant-Governor in Council, No. 156, approved the twelfth day of February, 1925, made under the "Special Surveys Act" in respect of the special survey of Block 1, Map 1234, Section 28, Lake District, and the Order made by the AttorneyGeneral set out therein and confirmed thereby, and the by-law of The Corporation of the District of Saanich, being By-law No. 335, intituled "A By-law in connection with the Special Survey of Block

One (1), Map 1234," shall be construed for all purposes as if the amendments enacted by this Act had been so enacted prior to the making of the said Order by the Attorney-General and as if the words "registered owners" had been used in the said Order instead of the word "owners" in all places where the word "owners" occurs therein; and it is hereby declared that it shall not be competent for any Court to declare invalid or defective, or to quash, set aside, or otherwise refuse to recognize the validity of said By-law No. 335 by reason of any non-compliance, either in the passing of said by-law or in the making of the said orders, with the "Special Surveys Act" in respect of any of the matters referred to in this section.

VICTORIA, B.C.:

Printed by CHARLES F. BANFIELD, Printer to the King's Most Excellent Majesty.
1925.

H'

CHAPTER 54.

[Assented to 19th December, 1925.]

IS MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:

R.S.B.C. 1924, c. 254.

1. This Act may be cited as the "Taxation Act Amendment Act, Short title.

1925."

2. Section 2 of the "Taxation Act," being chapter 254 of the Amends s. 2. "Revised Statutes of British Columbia, 1924," is amended by inserting after the word "mother," in the tenth line of the definition of "dependents," the words "father-in-law, mother-in-law."

3. Section 7 of said chapter 254 is amended by adding at the end Amends s. 7. of clause (d) the words " and his personal liability for the tax so payable in any year shall cease upon his obtaining a certificate from the Surveyor of Taxes that no taxes for that year in respect of the property, output, income, or other basis of assessment remain outstanding."

4. Section 14 of said chapter 254 is repealed, and the following Re-enacts s. 14. is substituted therefor:

"14. Every person shall keep adequate books of account and records for the purposes of this Act, and if the books or records kept by any person are in the opinion of the Minister inadequate for those purposes, he may prescribe the books and records which shall be kept by that person."

subsec. (1).

5. Section 21 of said chapter 254 is amended by inserting after Amends s. 21, the word "of," where the same appears the second time in the tenth line of subsection (1), the words "land and "; and by striking out

Amends s. 41.

Amends s. 42.

Amends s. 44.

the words "thirtieth day of June" in the fourteenth line of said subsection (1), and substituting therefor the words "thirty-first day of October."

6. Section 41 of said chapter 254 is amended by striking out the word "three" in clause (d) of subsection (1), and substituting therefor the words "one and one-half of one."

7. Section 42 of said chapter 254 is amended by striking out clause (a), and substituting therefor the following:

"(a.) All income derived from interest on bonds or debentures issued by a corporation where income-tax has been paid by the corporation in respect of that interest either indirectly or by way of separate return under subsection (1) of section 44; and all income derived from dividends from a corporation or from profits or shares from a partnership where the corporation or partnership is liable to assessment or taxation in respect of income or by way of alternative tax under this Act; but in the case of income derived from dividends from a corporation whose business is not confined to this Province, the exemption under this clause shall be only such proportionate amount of the income so derived as the income of the corporation earned within the Province during the period in respect of which the dividends were paid bears to the whole income of the corporation earned during that period and upon which such dividends were based, and the Minister shall have full discretion as to the manner of determining such proportionate amount."

8. (1.) Section 44 of said chapter 254 is amended by striking out all the words in the first eighteen lines of subsection (1), and substituting therefor the following:

"44. (1.) The net income of every person shall be ascertained for the purposes of taxation by deducting from his gross income the exemptions provided in section 42, and all expenses incurred in the production of that part of his income which is liable to taxation, and the income-tax thereon payable to the Crown in right of the Dominion; but no deduction by way of expenses shall be made for :-"(a.) Rents, interest, wages, salaries, or other remuneration unless the names and addresses of the persons receiving same are given by the taxpayer in his return: "(b.) Fees or salaries paid to a person as director, president, vice-president, or general manager of a corporation, or as partner in a partnership where such person is not a resident in the Province, unless a separate return is made therefor and income-tax paid thereon at the rates provided under section 52:

"(c.) Interest on moneys borrowed from without the Province, either by way of loan, advance, or through a bond or debenture issue, unless a separate return is made therefor and income-tax paid thereon at the rates provided under section 52, except that the maximum rate shall not exceed four per centum;

and the following shall not in any case be allowed as expenses incurred in the production of income."

(2.) Said section 44 is further amended by relettering clauses (a) and (b) as clauses (d) and (e) respectively; and by inserting the following as clause (f) :—

"(f.) Any interest on moneys loaned or advanced by a parent, subsidiary, or associated corporation."

(3.) Said section 44 is further amended by relettering clauses (c) to (1) as clauses (g) to (p).

9. Said chapter 254 is amended by inserting therein the following Enacts s. 47a. as section 47A:

"47A. Where it is shown to the satisfaction of the Minister that any corporation carrying on business in the Province purchases any commodity from a parent, subsidiary, or associated corporation at a price in excess of the fair market price, or where it sells any commodity to such a corporation at a price less than the fair market price, or where the Assessor is unable to obtain the information required to compute the net income of any corporation carrying on business in the Province, the Minister may direct that the corporation so carrying on business in the Province shall be assessed and taxed annually on its gross income as represented by its total sales or receipts within the Province, at a rate to be fixed by the regulations, but not exceeding two per centum of the gross income."

10. (1.) Section 52 of said chapter 254 is amended by striking out Amends s. 52. subsection (1), and substituting therefor the following:

"52. (1.) The rates of taxation on income shall be as follows:-"(a.) One per centum upon all net income up to an amount not

exceeding three thousand dollars; and

"(b.) Two per centum upon the amount by which the net income
exceeds three thousand dollars and does not exceed four
thousand dollars; and

"(c.) Three per centum upon the amount by which the net
income exceeds four thousand dollars and does not exceed
five thousand dollars; and

"(d.) Four per centum upon the amount by which the net
income exceeds five thousand dollars and does not exceed
six thousand dollars; and

"(e.) Six per centum upon the amount by which the net income
exceeds six thousand dollars and does not exceed eight
thousand dollars; and