And living expenses. Part of travelling expenses deductible. Undistributed profits of corporations. Dividends or bonuses. Income from estate or trust. Person liable. Rates. and the minister shall have power to determine what deficits or losses sustained in transactions entered into for profit are connected with the chief business, trade, profession or occupation of the taxpayer, and his decision thereon shall be final and conclusive. (3) In determining the income no deduction shall be allowed in respect of personal and living expenses, and in cases in which personal and living expenses form part of the profit, gain or remuneration of the taxpayer the same shall be assessed as income for the purposes of this Act. (4) The entire amount expended for meals and lodging while away from home in pursuit of a trade or business or occupation, provided the said expenses are required to be incurred in obtaining the income of the taxpayer. 6. (1) The share of a taxpayer in the undivided or undistributed gains and profits of a corporation shall not be deemed to be taxable income of the taxpayer, unless the minister is of the opinion that the accumulation of such undivided and undistributed gains and profits is made for the purpose of evading the tax and is in excess of what is reasonably required for the purposes of the business. (2) Dividends declared or shareholders' bonuses voted after the thirty-first day of December, one thousand nine hundred and twenty-two, shall be taxable income of the taxpayer in the year in which they are paid or distributed. 7. The income for any taxation period of a beneficiary of any estate or trust of whatsoever nature shall be deemed to include all income accruing to the credit of the taxpayer whether received by him or not during such taxation period. Income accumulating in trust for the benefit of unascertained persons, or of persons with contingent interests, shall be taxable in the hands of the trustees or other like persons acting in a fiduciary capacity as if such income were the income of an unmarried person. LIABILITY TO TAX 8. (1) There shall be assessed, levied and paid upon the income during the preceding year of every person: (a) residing or ordinarily resident in Manitoba; or (b) who remains in Manitoba during any calendar year for a period or periods equal to one hundred and eighty-three days; the following taxes: On the first thousand dollars of taxable income, or any part thereof, one per centum; on the second one thousand dollars of taxable income, or any part thereof, one and one-half per centum; on the third one thousand dollars of taxable income, or any part thereof, two per centum; on the fourth one thousand dollars of taxable income, or any part thereof, two and one-half per centum; on the fifth one thousand dollars of taxable income, or any part thereof, three per centum; on the sixth one thousand dollars of taxable income, or any part thereof, three and one-half per centum; on the seventh one thousand dollars of taxable income, or any part thereof, four per centum; on the eighth one thousand dollars of taxable income, or any part thereof, four and one-half per centum; on the ninth one thousand dollars of taxable income, or any part thereof, five per centum; on the tenth one thousand dollars of taxable income, or any part thereof, five and one-half per centum; on the eleventh one thousand dollars of taxable income, or any part thereof, six per centum; on the twelfth one thousand dollars of taxable income, or any part thereof, six and one-half per centum; on the thirteenth one thousand dollars of taxable income, or any part therof and all taxable income in excess thereof, seven per centum. rates. (2) In the case of those persons entitled to an exemption of Additional only one thousand dollars the above rates shall be increased throughout by one per centum. 1923 taxable. (3) The tax imposed under this Act shall be upon such income Income of earned or received on, from and after the first day of January, 1923, and annually thereafter. and wife. (4) Persons carrying on business in partnership shall be liable Partnerships. for the income tax only in their individual capacity; provided however, that the husband and wife carrying on business to-Husband gether shall not be deemed to be partners for any purpose under this Act. A member of a partnership or the proprietor of a business whose fiscal year is other than the calendar year shall make a return and have the tax computed upon the income from the business for the fiscal period ending within the calendar year for which the return is being made, but his return of income derived from sources other than his business shall be made for the calendar year. RETURNS liable to 9. (1) On or before the thirtieth day of April in each year Every person without any notice or demand, every person liable to taxation tax to under this Act, and any person, whether liable to taxation here- make return. under or not, shall upon receipt of a notice or demand in writing from the minister or any officer authorized to make such demand deliver to the minister a return, in such form as the minister may prescribe, of his total income during the last preceding year. In such return the taxpayer shall state an address in Manitoba to which all notices and other documents to be mailed or served under this Act may be mailed or sent. (2) If a person is unable for any reason to make any return Returns by required by this section such return shall be made by the and others. guardians Returns by employers. Returns by trustees, etc. Trustees to obtain certificate that no tax out standing. Enlargement. Penalty. guardian, curator, tutor or other legal representative of such person; or if there is no such legal representative, by some one acting as agent for such person, and in the case of the estate of any deceased person, by the executor, administrator, or heir of such deceased person and if there is no person to make a return under the provisions of this subsection then such person as may be required by the minister to make such return shall do so. 10. All employers, including corporations, shall make a return of all persons in their employ receiving any salary or other remuneration in excess of such amount as the minister may prescribe, and all corporations, associations and syndicates shall make a return of all dividends and bonuses paid to shareholders and members, and all persons in whatever capacity acting, having the control, receipt, disposal, or payment of fixed or determinable annual or periodical gains, profits or income of any taxpayer, shall make and render a separate and distinct return to the minister of such gains, profits or income, containing the name and address of each taxpayer. Such returns shall be delivered to the minister on or before the thirty-first day of March in each year, without notice or demand being made therefor, and in such form as the minister may prescribe. 11. (1) In cases wherein trustees in bankruptcy, assignees, liquidators, curators, receivers, administrators, heirs, executors and such other like persons or legal representatives are administering, managing, winding-up, controlling or otherwise dealing with the property, business or estate of any person who has not made a return for any taxable period or for any portion of a taxable period for which such person was required to make a return in accordance with the provisions of this Act, they shall make such return and shall pay any tax and interest and penalties assessed and levied with respect thereto before making any distribution of the said property, business or estate. (2) Trustees in bankruptcy, assignees, administrators, executors, and other like persons, before distributing any assets of taxpayers under their control shall obtain a certificate from the minister certifying that no unpaid assessment of income tax, interest and penalties properly chargeable against the person, property, business or estate, as the case may be, remain outstanding. Distribution without such certificate shall render the trustees in bankruptcy, assignees, administrators, executors, and other like persons personally liable for the tax, interest and penalties. 12. The minister may at any time enlarge the time for making any return hereby required to be made and shall not be bound by any return or information supplied by or on behalf of a taxpayer, and notwithstanding such return or information, or if no return has been made, the minister may determine the amount of the tax to be paid by any person. 13. Every person failing to deliver a return pursuant to the provisions of subsection (1) of section 9 within the time limited therefor shall be liable to a penalty of fifty dollars and five per centum of the tax payable by such person; provided however that such penalty shall not in any case exceed five hundred dollars; and every person failing to deliver a return pursuant to any other provision of this section within the time limited therefor shall be liable to a penalty of ten dollars for each day of default; provided, however, that such penalty shall not in any case exceed fifty dollars. information 14. If the minister, in order to enable him to make an assess- Additional ment, or for any other purpose, desires any information or to minister. additional information or a return from any person who has not made a return, or a complete return, the minister may by registered letter demand from such person information, additional information or return, and such person shall deliver to the minister such information, additional information or return within thirty days from the date of mailing of such registered letter. For the purposes of any proceedings taken under this Act the facts necessary to establish compliance on the part of the minister with the provisions of this section as well as default hereunder shall be sufficiently proved in any court of law by the affidavit of the minister, or any person appointed by him for that purpose. Such affidavit shall have attached thereto as an exhibit a copy or duplicate of the said letter. of documents 15. The minister may require the production, or the pro- Production duction on oath, by the taxpayer or by his agent or officer, of taxpayer. or by any person or partnership holding or paying, or liable to pay, any portion of the income of any taxpayer, of any letters, accounts, invoices, statements and other documents within thirty days from the date of the mailing of such demand. by others. 16. The minister may require and demand the production, Production or the production on oath, by any person, or by his agent or officer of any letters, accounts, invoices, statements, financial or otherwise, books or other documents held by such person, agent or officer for the purpose of determining the tax believed to be payable by any other person, and the same shall be produced within thirty days from the date of mailing such demand. by persons money for 17. Every person who, in whatever capacity acting, is in Information receipt of any money, thing of value, or of profits, or gains receiving arising from any source of or belonging to any other person shall, when required to do so by notice from the minister, prepare and deliver to the minister any information required within thirty days from the date of mailing of such notice. the minister. 18. The minister may make such enquiry as may be deemed Inquiry by necessary for ascertaining the income of any taxpayer, and for the purpose of such inquiry the minister shall have all the powers which may be conferred upon commissioners under "An Act respecting Commissioners to make Enquiries concerning Public Matters," being chapter 34 of the Revised Statutes, 1913, for compelling the attendance of witnesses and of examining them under oath, and of compelling them to answer questions and compelling the production of books, papers, documents and other things. Depositions of witnesses. Accounts to be kept. Penalty. False statements. Assessment and demand. Notice to last known address. Penalties for unpaid taxes in arrear. Taxpayer leaving Manitoba. 19. The minister may cause depositions of witnesses residing within or without the province to be taken before any person appointed by the minister in a similar manner to that prescribed by the rules of the court of king's bench for the taking of like depositions in that court before a commissioner. 20. If a taxpayer fails or refuses to keep adequate books or accounts for income tax purposes the minister may require the taxpayer to keep such records and accounts as he may prescribe. 21. (1) For every default in complying with the provisions of sections 14 to 20 the persons in default shall each be liable on summary conviction to a penalty of twenty-five dollars for each day during which such default continues. (2) Any person making a false statement in any return or in any information required by the minister shall be liable on summary conviction to a penalty not exceeding one thousand dollars, or to three months' imprisonment, or to both fine and imprisonment. TAX NOTICE 22. (1) As soon as possible after the receipt of the return of a taxpayer a statement of assessment and of demand for income tax shall be transmitted to him by post prepaid or to his accredited agent at the address shown on the return. Such statement and demand shall set out the amount of the tax, the time within which an appeal shall be made to the commission against such assessment, the time within which and place where such taxes are payable, together with a. memorandum of the penalties payable for default in payment. (2) Where no return has been made by the taxpayer a notice of assessment shall be sent by post prepaid to the last known address of the taxpayer. (3) Upon all taxes remaining due and unpaid on the date or dates respectively fixed by the minister for the year in which such income taxes were levied there shall be added five percentum therefor, and further, at the beginning of each month thereafter, an additional sum amounting to one percentum of such taxes. COLLECTION AND ENFORCEMENT OF TAX 23. (1) The minister, if he suspects that the taxpayer is about to leave Canada, may for that or any other reason by registered letter addressed to the taxpayer, demand payment of all taxes, penalties and accrued interest for which the taxpayer is liable, and the same shall be paid within ten days from the date of mailing such registered letter, notwithstanding any other provisions in this Act contained. Non-payment of the said tax within the specified time shall render the goods of the taxpayer liable to seizure by the bailiff of the county court division in which the goods of the taxpayer are situate. A certificate of non-compliance with any such demand, signed by authority of the minister setting forth the particulars of the |