CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 264

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22.

Section 43: We have also received requests for allowancos

in respect or children beyond the fourth child. To suggest

the following addition to subsection (c) of subsection (1)

of Section 43:-

"and two hundred dollars for cach subsequent child"

together with tho substitution of the following proviso (iii):-

"Total allowances in respect of children shall not

excccd in all seven thousand dollars".

We have considered the question of apprentices. As proviso

(ii) is at presont drafted, apprentices - even though they

may be receiving no emoluments or purely nominal emoluments

do not rank for child allowances. We agree that this is not

equitable and wo suggest the following addition to proviso

(ii):-

"other than employment proved to the satisfaction of the

Commissioner to be apprenticeship".

We note that as drafted the Bill makes no provision for the

deduction from income of any charges theroon by way of

interest, etc. and we suggest that the following be addrā

to the allowances under Section 43 (1):-

(e) sums payable by way of interest on any money

borrowed for the purpose of producing the income or

any part thereof.

In connection with (a) of subsection (1) we have considered a proposal that contributions to a Provident Fund should

be allowed as deductions from income for the purpose of

taxation. We are of the opinion, however, that such

contributions being not entirely of the nature of life

insurance but, rather, savings should not be allowable.

If such a proposal were accepted it would be difficult to

refuse to allow any other form of saving as deduction

from income for taxation purposes.