Evening star., 1932-05-21
By JAMES MONTAGNES.
ARTICLE NO. 4.

TORONTO, May 81, 1882.
w WHILE superstitious people hold
A | 13 as an unlucky number,
wv the Canadian government
v looks favorably on part l3
of the special war revenue
act. since the thirteenth piece OF legls-
lation under that act refers 10 one OF
the largest sources of revenue, the sales
or consumption tax on manufactured
merchandise.
In legal language is set forth the
WORKINGS of a tax which has become
smooth running piece OF revenue ma.
chinery. though in the beginning II
caused much trouble. Were IL noG iol
the fact that the present oepresslont
has caused a drop in other sources ot
! revenue, the sales tax might nave peeu
abolished last year. Canaolah DIsilsoS stoI
was given to understand by the Liberal
legislation. which preceded the present
conservative government. that should
other revenue be sufficient 10 meet
government needs, this tax woulo De
eliminated. And to back up that state
ment, every year since 1924 l per cen.
of the tax rate was Topped on, I'LL !
ner cent was reached in 1880. But
business took a drop. and the we'll
oiled machinery is still functlonlng' at
a much higher rate.
The regulations of the act call 1or
license to be taken out by every manu-
facturer or producer. except Tor rev
small manufacturers or producers VINO
are exempted at the dscreton OF LIE
minister Of national revenue ms II
cense is an annual affair and costs %.
There are about $4,000 such licenses III
existence in CANADA.
Tax Paid Only Once.
While it is necessary for manufac-
t11rers to take out license, Whole-
salers and jobbers desiring sales 'a1
license must apply to the minister at
ottawa, and if granted license, put
IN bond equivalent to II per cent OF
the annual sales of the preceding year:
This bond ranges from a minimum OF
$4,000 to $4,000 maximum. Proper
bookkeeping is another requisite.
Armed with sales tax license, goods
bought by a concern for use in manu-
featuring merchandise do not nave 10
nav the sales tax. 1t Is but necessary
to ouote the sales tax license number
This applies to domestic and imported
goods, and allows licensed firms 10
sell materials required IN manu1actuf-
ing without paying tax. The ultimate
reason Tor TINS procedure Is tila1 tl4e
sales tax will only be paid once. when
the completed article is sold. whether
to licensed dealer or unlicensed dealer;
Goods bought for use by a licensed
firm and not for further manufactur-
ing, must, however, pay the sales tax:
A wholesale house buying cord and
paper for wrapping is charged the sales
tax, since this firm Is the ultimate con-
sunner. But If this firm buys material
to make up a dress, purchasing from a
licensed manufacturer, it does not pay
the sales tax. the bill from the manu-
facturer bearing the wholesalers license
number instead The retailer who buys
the dress Is charged the sales tax by
the wholesale house.
There Is no sales tax on exports.
That is one of the few exceptions. The
act goes on to say that where goods are
uncertain of value the minister may
determine the value for taxation pur--
poses. This arbitrary settlement OF
value also applies to articles produced
and given away free.
Refunds Are Allowed.
Certain articles, as boots and shoes.
printing paper for newspapers ana
magazines, are exempted Of half the
sales tax. Refunds are allowed under