t: l r ‘K9974???’ i i ' I 'iii’. iilfjf b‘. ll4h\- vvw‘ YJL/itsl.) 5.1 “.14 “J. FIJI PAGE SIX PRIIIDE EDWARD-TODAY and WED. THE‘ TOP-NOTCII NAMES 0F RADIO, SCREEN, VAUDEVILLE AND CONCERT STAGE YEAR'S BIGGEST MUSICAL l-\L\ DENNY- ‘ZIU W! BURNS IN THE AND COMEDY HIT RINNY Goomvuu uiid I'll! {UIKINESIIG in uiiirii i-‘().\' Nl-ZWS - Showing "rrixiis scilool. Dlsiisruit 455 Children lost their lives l Plus specialties ‘ by many ‘ on». suns HOVDIU SIOKQWSKI, Swen» inv uv<>.._,,,_, a Today — \\‘ctl. B.\I'I‘I.I.\Ui Sllllllljltlll DII S] Illi Y A giiiiiii ulil lady p l ll y :- Prolessienal Cards wagon- ‘ECIANI A&I'CM5QI" Chartered Accountants l 140 uiciiiuuiiu siren , Purine 47. P. o. u»: iz. McLeod s. Bentley “7- l1. IIICDFTLEY, K, C. J. .\. BENTLEY, K. C. l Barristers it I221: Madluig-an & Trainer MARK If. SIJrGITKii/LN, K, C. , C. ST. (‘LAIR TTIAINUII, ll. A. Barristers, Solicitors, Etc, MONEY T0 LOAN Office: Over Provincial llimk, Richmond Street. Wliarlnttctowu. , t Bell s. Mathicson B. R, Ilvll l). Ii. illuilllirslln, LLB. Barristers a Sulicitorg. TO LOAN luirlottetowml‘ EJ. iliii IPIIcPIIEE, B. A; K. c. NQTARY 82C. rhinitis-run. soucrron Riley liuildinz. Charlottetown. tztr-g: _ Palmer & Haslam ll. J. PALMER, K. C. A. J. lIi\t~'l.)\i\'l. B, A., LL, B‘. BARR YCRS. ETC., Bonk of Nova Sentin Chamber: Charlottetown. I’. E. 1_ XIIONEY TO LOAN Phone 85. P. u. Bu: I21! Moo m-oooo +000 o-ooooooo» 0arter’s Seeds arc: now ready for early planting in the HOT Bill) and later 0n in the open garden, They are for sale at our SEE!) Slflllli. Queen Street and Iiy upwards of 175 P-IICRCH ‘NTS on Prince Edward Island. CAIVFPIIPS S l] E I) CNPALOGIIE tells you how to get and grow (_‘.i\R'l‘ER'S SEEDS. Carter's Farm .; Seeds A large stock 0f: , CLOVER and TIM- <‘ OTIIY SEED. SEl-JD i GRAIN of all kinds at lowest. prices. Book your orders with us early as some viirle ties of Seed and Seed Grain are very scarce and further supplies will he difficult to get. vvv vvvvvvvwvvvvvqgvvv Vv ALAALAAA AQAAAA QQOOO-OO-QO-OO-Q-O-OO-O§OQOO-OOOOQO QO-OO§O-OOOOOQQQ-O§Q§-OOOOOOOOOQ§O+P§OO yA few copies of our SICICI) ('.’t'|‘i\I.OGl.7I1‘ still on hand. Ask or send for a copy. Garter 8i Co. Ltd. E . lFun, Music, Romance Fill Comedy Bltl lilti)r\l)C.~\5'l‘ um .»i'r THE ritlheli Lltttlllltl) Liisiiy the most delightful pot.- pouriu ui beauty, wit, iiiusic and. itiytliiii offered during the current. biwbvll. "The Big Bioauciist o1 1937," ‘t \\Ilil'il opened .it the Prince Edward iilitxilre yesterday‘ blxiigs tu lJic rt ril a gt-neioils helping‘ of the 1\1i'-\\u\'e's most outsiaiitluig 1J0‘- itirnivrs allied by a lids-i n1 Li“; scirriis" best 1‘lll.i'i'ill.llll‘l'5. btlllllllltlllllg. gtiy, Lump“ and oiicn IllIill'llill.\_l_\' luiiiiy, ‘The Big - lirouiicaist 0t 19157’ lllCiliLlUS Jack Brunt‘. kiveiuc Burns and Gracie Allvll- Bub Bil-Him Martha Raye, 1?"!!! Uodinun and his orchestra, blllrlvv Ross. Ray Milland, Frank FORM. Benny l“1L‘i(IS, Leopold $19k- owski and his Symphony Orchgu-a mid many other outstanding Sing- r-rs, dancers, musicians, comedians and specialty performers. The story deals with. the mmgnge that blossoms between Miss R055 and MliLaiid when the latter is as_ signed to trick her off the air by Forest, an orchestra lender, and the studio manager. She dis_ iouis the deception and breaks with. Aiillimd. Gracie Allen, sponsgy- of a program. teams her with Flor- ‘est and they become popular. An aii wcddiitg is planned for the two but when the moment arrives Miss Rots flees. She is found after u llvrtc chase and rushed to the studio to go through with the wed. duvt as per schedule. She does ._ and finds herself miirrierl to M11- land. All of this is done to excellent, illllliling and splendid music both "hv-‘llli-l" and sweet." Program also includes the Fox News yvhlch this week, among other things, show the Texas school dis. 2L5‘ (‘IX ‘fwomen In Distress” Jammed With Action, Comedy and Romance Filled wth an abundance of com- edy. romance and suspense. Col- umbia's production of "Woman In Distress." a fast-moving story of lieuspzipur life. opened an cilgage- ment of three days at the Capitol Theatre yiesteitduy: The story is replete wltli iuiusual twists. telling a tale of the profes- sional rivalry between a handsome. yyoimx star reporter and a beautiful sob sister on an opposition daily. The rivalry, however. is confined only in business and throughout the storv there is always an undercur- rent oi‘ delightful romance. When t.h-~ (To attempt to aid an eccentric fllti lurlv -n solving the mysterious ihefl or her va‘unblc painting. coin- llilCillifills arise that speed the story to n thrilling climax. .\inv Rchsmn has never been seen in better ndvnnlnue in her role of the grand old lnrlv and the mmim- tic interest is brilliantly handled by Irene Hcrvcv. as the sob sister. and Il.'lI',("nlllP Dcnn Jatyzcr as the star l'('l‘,t‘l‘i(‘l‘. Other members of the flne cast include Douglas Dumbrllle, Gene Itlowian. (‘tr-overs McKay. Arthur Loft. Charles Vlfllson. Paul Fix and Russell Hicks. [YSVII -FIOR NOFR III If you have soiiniilk on hand. and have nn use for it in baking. try using it to clean the white keys of the pIfllIO.—-4MI'5. H. C" Toronto. I §ei~vice none. We supply the right grades for oil uses. ll-lng us up on the tele- phone and learn of our reasonable prices for all kinds eLthe bu! Coal- We shall be pleased to serve you. $'W. D. GILLIS D0. PHONE 116 ‘The Central Guardian o+o+004++§04 Q 4000-0000 CRASWELL f0!‘ Photographs. CONFEDERATION uni INSUR- ANCE. ii-eins-‘l-ia-ari FOR. COLDS AND FLU Chim- practic adjustments are invaluable- Dr. Carson. L-l500-4-l3-1I- W" i PLAY ENJOYED-The Stan 9y Bmwe players presented then c; [my "A Southern Cinderella tan Stpaiilcy Bridge hall to a 10116 Income Tax i%wmIl Discussed At Rotary Mr. Frank Stewart was Chairman at Rotary Luncheon yesterday Rt. "Dair Archibald addressed the members on the subject of “Income Tax". Two guess, Mr. H. S. Wana- maker and Mr. T. Gcrclcnspencer were present. On motion, Rotarian Hon.’ B. W. LePage, who ls going to England to represent the Gov- ernmeuit at the Coronation, was also appointed Rotary delegate to the International convention to be held at Nice, France in June. Mr. Archibald spoke as follows: "The term ‘Income Tax ls so broad as to require definition, or perhaps I should say limitation, be- fore starting to give a talk. Unless I do that, I might easily wind up my discussion by comparing the British Income Tax legislation, cumbersome as it is, with that of the United States, where the dis- tinction between actual income, us we understand it, and what are termed "Capital Profits" i\ not made. Or I might go into the Pro- vincial field and compare the and appYeClflIZiYC audience. Bitch .Murlel LLL\\'l‘t‘llCi:‘. role “'35 well acted, and the Dial’- 91's are receiving many coiifllYll/“IP tions on the success 0f the“ Pm" The best of‘ order was REP‘ and the attention of the audience was. held. from start to finish. The specialities were OIIIOYW b!’ “Fry one present This interesting ILRY centers in an old Southsm Aristocrate home. and tells t 0W love conquered pride. vIt con ains both clouds and sunshine. bill» a happy ending. A much married “Negro Mammy," who 1S a faith- ful friend of the family, proves I181‘ “torth in bringing happiness at the may, 'I‘lie players are receiving m" vltations to present their play i" as roads different places as soon permit. M n, i-z. c? Slwl-lll/PAICY-MYB- Girls‘ WOTK Secretaiy of the Mtiritiine Religi- ous Education Council. has been ‘on the Island this week 00115611‘ “g uilth leaders in Sills’ wmk» and making nuns for the com-in: 511m; mers annual c G I. T. cam? i Canoe Cove. The type 0‘ ca-mp suggested for this I've!‘ is some- what different to what has been followed heretofore. ‘Th6 Pwiram will include a leadership training eourse, along with the Teflllla? C- G_ L T, pump program. and the leaders attending [will have the benefit of watching demonstra- effieiency of the Income and Per- sonal Property Taxation Act with that of the other Provincial taxes. For that reason, I want to say right. at the rtart that I ain going to con- fine my remarks to The Income War Tax Act, Dominion. of 1017. I might. further say that I am go- ing to touch only a sinnll portion of what might be said in connection with that Act. To cover the whole of the subject in the time provided at a Rotary luncheon, would be to achieve the impossible. 'l‘hnt. I understand. is a. feat which no lllRll has yet succeeded in tioiiie. and fur , be it from nie to attempt it to-iiay. "In the first place. I think ii is best to go back to the year 1917, when this Act fir~t saw the light of day. In that year, the War iviis in full sway, and tlicrc was little iii- dlcation us to when it would be over. The Cnnatliau Gt)\'t‘l‘lllllt‘llli Wm finding the question of making both ends meet just ii trifle awk- ward, and, as Governments will, it began to look for new sources of taxation. As you all know. under the British North America Act. the principle was laid down that all Provincial taxation \\'li.s to be of the type that is known as ‘Direct’ . Applying John Stuart Mill's defin- ition of a direct tax, this means that a Province must levy ‘its taxes so that the burden will not be shifted to person: other than those on whom the tax is imposed. This, tions of model group presto!“ by a staff of experts in teen-age work under the directorship of MYS- Lawrence herself. The Cami) dill-iii are July 19th to 29, and _MIB- Lawrence plans to come 88M" W the Island during the early sum- mer, when in company with local workers. she will Visit the 19 C. G, I. T groups in various centres from Souris to O'I..eui'y anion! interested workers attending the meeting of organization held Tues- day evening at the home of Mrs. F. M. Stewart, Rochford St., were; Mrs. J A McMillan, Mrs G. C» Webster. ‘ars. A M. Douglas, Mrs. W. M. Rowe, Mrs. F. A. A. Miitch, Miss Wilson, Mrs. R. H. Rogers, Mrs J. M. McPadyen; Misses Emily, Platis, Alice Part- ridge, Irene McDonald and Marg- aret. Webster, the Misses Platts and Partridge and Mrs. McPhee, being named a special camp com- mittee While in the city, Mrs. Lawrence, is the guest of Mrs R. H. Rogers, Kent St. WEDDING BELLS -— A very pretty wedding took pliwe at St. James Church, Arlington Heights, Mass. when Edward A Walsh, of Summcrside P. E I took Irene G. Walsh of Eiliotvale, P. E, I. for his bride. The pastor Rev. Maurice OiCoimor, preformed the ceremony, after which a. nuptial hlgli mass was sting, The church was prettily (lecoratcd with Easter llllies, snap dragons‘. and. tulips, The bride was dressed in a Roosevelt blue ensemble with blue and white accessories, and wore a corsugc of Gardenias, and llllies 0f the valley. Miss Marie Donahue, a niece of the bride groom. acted as bridesmaid, she ivas dresséd in rlpcord beige ensemble. with brown accessories and wore a corsage of tea roses and babys‘ breath. Mr. Eduard A. Walsh, n nephew 0f the bridegroom acted as best mim. , After the ceremony a wedding‘- brenkfflst was served at the home‘ of Mr William Shea, a sister of the bride groom, to the immediate family Later in the clay a reception was held at Mr. Peter Walsh's home another brother 0f the, bride groom “there guests were present from Arlington. Melrose and Cambridge, Muss, New York and Rhorle Island. Late that evening shmvercd with confetti and fire the newly weds‘ left on the S, S Yarmouth Boston Bout for Canada. Mr. Edward Donahue of Rnsencath, P. E. I. n nephew of the bride groom, come to Boston for a visit and attended the wedding. 1 Mlnnrdfln Linirnent remove! ltnllll. incidentally, still holds, and ‘if any- body wants to have some very ex- pensive entertainment some day, it might be an idea to try to save eight cents on the price of a gallon of gas by challenging the constitut- ionality of the tax. There might be some doubt as to the outcome, but I am convinced that such a cusc would go to a very high court for a final decision. and that the decis- ion, when it would be finally hand- ed down. would take cnrful note of the provuions of the British North America Act. closer to our subject, the general understanding prior to ~1917 ivas that the Dominion would confine its taxing activity to the field of iii- direct taxation. By an indirect tax, of course, was meant a tax which would be leveled on one Cass of persons with the intention that it be shifted and diffused through- out the whole structure of the pop- ulation of the country. Thi: in- cludes such things as the Customs dutle", Sales Tax. and so forth. Consequently, it came as somewhat of a surprise and a shock when the Dominion deliberately invaded the field formerly thought to be the sacred property of the Provinces, and imposed the Income War Tax Act, 1917. "This Act followed the British practice of taxing income only. and leaving ‘intact the capital which produced that income, even though that capital should increase in value. This is contrary‘ to the practice in the United States. where increases in the value of capital are taxed as income. and where lo "ses- of capital are regarded as deductions from income, All this boils down to the proposition, under our luw, that i1‘ a man buys n house which he rents to another person, hi; income for purposes of taxation is the nel amount of rent he recei- ves. utter first deducting necessary operating expenses. If. a year or so later, he sells the house at a handsome profit. the attitude of the law is that his original capital with which he has earned his in- “However, to get back a little' come, has simply been tumed into cash, and there ls no tax on the difference between what lie paid for the house and what he received for it. It would take the some attitude I if he had sold the house at u sub- stantial loss, and would not allow , him to deduct the amount of the loss from income. "Don‘t think from that, though, . that you can go into the real estate i biriness and buy and sell houses without paying any tax on your in- come. . "The first tax imposed tinder this Act was 4% on all income over $1,500.00 of unmarried persons, \\'IdOWs_OX‘ wldowers without de- pendent children, and the same tax on all income over $3,000.00 in the ("use of other persons. Such other persons, of course, were married persons, widows or widowers with l dependent children, and, strange as l ll may rcein. corporations. In add- ] ition to all this, a super tax was iin— pnSEd on all income over $6,000.00. except in the case of corporations. No pr0Vi~i0n ivas, made at this flme for exemption from taxation be- cause of dependent. children. It all worked out so that a married mail with an income of $10.000.00 paid a norinul tax of $280.00. to-getlier with a super tax of $80.00, making a total payment of $360 00. Corporations having the smile income. paid only the $280.00. In addition, a discount of 20% was allowed on all taxes. t "SIIICC that time, the rates have ‘\'lll‘ll‘fl considerably, both upwards i and downwards. and have become con iIIIPYllbIy more difficult to cal- icitlate, The general trend, however, has been upward, with the greatest linrrciis-ivs coining between 1930 and ‘the present time. In that year, a lIllll'l'll‘(I man enjoyed an exempt- lon of $3,000.00 plus $500.00 for each ill-pendent. child ivhlle corporations l>=11d only 8'1’. on all income in ex- ecs: of $2000.00. For the yxiar 1936. however. the picture was vastly changed. The married man's exemption was re- ydueed $2,000. plus $400.00 for , each dependent child. and, in addit- . ion. he had to struggle with a new f super tax. In that year. cur friend iwith the income of $10,000.00 who Epaid a tax of $380.00 in I917. y $232.00 in 1930. would pay a total of ‘ $651.00, assuming in all cases that ; he has no dependent children, and I that half of hi: income is from in- fvestmenis. The corporation that l paid $280.00 in 1917, $640.00 in 1930, i Dald no less than $1,600.00 for the 1 year ended December 31, 1936. l "I don't intend to take up your itime by a detailed description of ‘the changes through which this Act has passed. The Prince Ed- i ward Island Trust Company print t the Act in this little book which I have in my hand. 1n addition to the Act itself, they include an ad- mirable siunmary of the history and development of the Act. 1 be- lieve that the purchase price is one dollar, but I can assure you that it is money well spent. "As it stands now, the Income War Tax Act is relatively com- pluX. and is administered by a large and efficient staff. Information as to the incomes of persons liable to tax is obtained from eight spe- ciifc sources. In the first p'ace, whenever any cf us cash a coupon from a bearer bond. we are requir- ed to make out what is known as nu ownership certificate. 'I'his, as you know, sets out principally, the name of the person cashing the coupons, the name of the bond i5- sue, and the value of the coupons i‘l‘l.*Il(‘(i. These certificates are made out more or less continuous- ly throughout the yen-r. and reach the zipproprinte office of the De- partment usually within about B. ivcck at. the most after they are cashed. There they are carefully placed in files for individual tax- payers, and later compared with the returns of the persons who have cashed the coupons in order to see that they have declared all the in- come they have received from this SOHFCC, If anybody, either through carelessness or in an attempt to evade taxation, has omitted to de- ciare all the introiuc so received, the Department, on rfsooverlng the omission. has the power to double the amount of the income so omit- tetl for taxation purposes. What usually happens is that, if the in- conic so omitted is $100.00 or less, the individual is assessed on the exact amount only; it‘ the income is between $100.00 and $300.00, the question of whether or not it is t0 be doubled is left to the officials of the local cit-ice. who are not likely to double it if they are 00H- vuwed that the omission was a. bone tide error, and not an at- tempt. to evade taxation; if. how- ever, such income is over $300.00. it must be doubled except in the most extenuating circumstance». which are very rare indeed. “The next source of Information as to income are the three s0- called "information ' returns". which provide ‘u-‘ormation with re- gard to the calendar your ended the previous December, and which must be filed on the last day of February in each year. These re- turns are those designated T-t, T-5, and 609. The T-4 must be completed by all persons, whether individuals or corporations, who have other persons in their employ- fn it must be set out all payments of salaries or wages in excess of $1,000.00, together with the names of the recipients. The balance of the payroll, paid to persons receiv- ing lea than $1,000.00, is stated in a lump sum. In the case of coni- missions, fees. bonuses, and retain- ers paid to pmfessonal men, all a- mounts of $100.00 or over must. be set out in detail, together with the names of the recipients. Any em- ployer not filing this return on or before the last day of February in each year is liaible to a penalty of $2.00 for each day of default. or a maximum of $50.00 In actual practice, however, an employer who has no employees subject to tax is rarely bothered by the De- partment ‘if he fails to file this re- turn. “The T-5 applies to corporations only, and sets out the amounts paid out to individuals during the prc- ceding year in the form of divi- dends. Likc the T-4, all corpora- tions are required by the Act to til»: such a return, but. 1f a small local corporation is kpown to be making continuous losses and paying no dividends, its omission to file tlfs return is sometimes excused. ‘The 009 covers interest paid. applying particularly to interest paid by corporations 0n registered bonds. ‘These forms, as you will readily tinderstand. are not used extensively in Prince Edward Isl- and. “Lke the T-l, both these returns carry a penalty for the omission to file- them on the last day of Feb- ruary. In this case, however. the penalty is $10.00 per day of default, with a. maximum penalty of $50.00. “From all this information. the Inclme Tux officials are able to work out pretty well in advance the amounts of income which indi- viduals will be showmg on their annual returns from these sources. The important information that is not gathered in this way is the a- mount of profltwhlch a corporation, a partnership, or an-indlvldual has made. For this. they must depend on the returns of income made by individuals on the 30th day of Ap- ril in each year, by corporations within four months of the end of their fiscal year, and by trustees of estates on the last day of Febru- ary in each year. These are the returns dasignated T-l for individ- uals other than farmers and ranchers, T-lA for farmers and ranchers, T-il for corporations. and T-3 for estates and trusts. It is these returns which entail the greatest amount of work both on the part oi’ the persons who must make them out. and on the part of the officials who must check them for accuracy. Asi I rarely have much to do with the T-lA’s and the T-3‘s, I am going to leave them out of the present discussfim. “If you will look up Section 33' of the Act, under Part V, you will find that “Every person liable to taxation under this Act shall, on or before the thirtieth day of Ap- ril in each year. without any notice or demand, and any person wheth- er lialale to taxation hereunder or not. upon receipt of a not‘ce or demand in writing from the Com- missioner of Income Tax or any officer authorized to make such de- mand, deliver to the Minister a re- turn, in such form as the Minister may prescribe, o.’ his total income during the last preceding yeiir." It is this section which is responsible for all the comic cartoons about income tax which usually appear just about this time of year. "Iii the next section. you will find that, if a mun is a member of o partnership or a proprietor of B business whose fiscal year ends at some date other than with the calendar year. he shall declare, as income from the business, the pro- fit for the fiscal year ending with- in the calendar year for which he i9 filing the return. IN BRINGING UP KAI " ' || _' " "L HER LE1’ IQGIN awhile w-udéfiiilfi Sl-Ul’ up a» LIARE TO STEP OFF I'l- HJRQY l Mflfi- ' Tl-E NEWS ,. ._,,.,“ .-. R R VVIl-L I4 MIEB "THE CORONATIONP- AUTOMOBIL SURANCE I i HUGHES 0f EDMONDS I50 Richmond Street ‘- Phone 51.33 wgMari-lfii- . flmw Alsbutine provides u rich, beautiful, luring finish u: low oou. Will not rub oft‘, or show brush-marks. Simple, ouy- to-foilow dh ’ 5.000 dealers to serve you." ‘I'll! GIL ‘I -._ s lbs Dll ROLAVE "t! 0n. noun“ "when iunmi Dill!" EPuI-IRDIAVI min cutoff," _ - . .. ,,.,...... teriors. A easily. mically. nu: ROGERS Phone 105 on every package.- Gypsum. Lime and Alalaallne. Canada. fiililel Hood Ollai PARIS, Ontulc, Coeds DUROLAVE WASHABLE WATER PAINT I. -‘., p Truislonn your dull. clieerless rooms into bright colourful in- “Durolavo" does so quickly and econo- For Beautiful Interiors HARDWARE DD. LIMITED Charlottetown ‘In the next section again, you will find that a corporation must file the T-2 netum within four months after the end of its fiscal year. "On first glance, OOHLDI-ilh wth these demands would not up- pear to be very diilficult. For per- sons whose only income is a fixed salary, no problem presents itself. For those who must calculate business income, or income from stocks, however, the question ariau as to just what part of the gross receipts is to be iegarded as in- come, and what expenses may be allowed as a deduction from iii- comie for purposes of taxation. In the first place, records of the busi- ness must be kept. and kept in such a way that the amounts of gross income and of the various expense may be easily ascertained. Even this does not solve the prob- lem. howcver,,a.s, once the pro spective taxpayer is armed with such information, his next prob- lem is to find out whether or not his method of calculating net in- come agrees with that of the De- partment. llt is here that the in- dividual who wishes to maike out a will“! runs into trouble. He can study pie Act word for word. and find that depreciation is one of the expenses which may be de- ducted from gross income for pur- poses o.’ taxation. Another thing which he will find i; that depletion is allowed on dividends received on certain mining stocks. What he will not find, however, is how much depletion he is allowed to claim on. Nor will he find how much depreciation can be claimed on the different types of assets used by the business. Most important of all, he will not find that the claim for deprewatlon will be disallowed later date, due to having made an error and paid tco little tax. Even at that, however, if there are any unusual features present, them may be trouble. as these rulings, while relatively stable, have some- times been reversed by the Depart- ment for necessary causes, and, in any case, are not to be regarded as being as authoritative as tho Act itself. v “Many taxpayers make out tiheh returns incorrectly, and, on not re- ceiving notioe of anything wrong from the Commissioner within the 'fol1owlrig year, assume that their return has been accepted without question. This is by no mean! necessarily the case. In going over the returns eaoh year, the Income Tax offices have so much work in checking over the returns that an correct that any which do not ap- pear to be correct are simply laid aside until some future data, when they are gone into more carefully. When they finally get time to male their iinvestlgiifiioiis, they first tackle those returns that show a taxable income. leaving thou which show no income to the last. Consequently, it is sometimes foul or five years before they get o- round to looking into a return which had incorrectly shown no income. t "Even when these returns an first passed, however, there is stll a chance that they may be re- opened for l-ll estlgation on the up- pearanoe of any new factors o! materiel lmrportunce. Such in- vestigations very often crop up after the death of the taxpayer, when his executors apply to the Income Tax Department for a Clearance Certificate. The assets of the estate are carefully unles; the amount claimed is incor- porated in the regular book; of re- cord of the business at some date prior to the time when the return is required to be filed. liqualbi important is the fact that the Act will not tell him that, in years when his business is losing nwney. he is entitled to charge only half of the regular depreciation on plant, leaving the rest to be claim- ed as a deduction from taxable in- come at some future period. I “The answer to those questions is found in the rulings and inter- pretations which have been issued from time to time by the chic! au- thorities of the Department. The Dominion Association of Chartered Accountants collects and prints these rulings and distributes them to its members. I have here the copy which we use in our office, and it is my impression that there are not as many as half a dqun copies of this information in the whole of Prince Edward Island. "The prospective taxpayer, than. who has accurate. records of the business, and who has mastered the information both in the Act itself and in these rulings, is in n. pretty fair way to make out his return, confident that he will neither pay more tux than he ll. by law, required to my. nor that he will leave himself open to an un- ‘ inveatigatioxi at some scrutinized, and, if it appears that , the person has saved an unreason- ably large amount of money in proportion to the income reported from year to year, an explanation is demanded. Very often the ex- planation in such a ciise i; that the taxpayer, during his lifetime, has made a certain amount of money on the stock market; or he may have received money as an inheritance or from life insurance policies; or it may be that he has merely been exceptionally frugal in his method of living. In any cnoe, these explanations, if they are cor- rect, will relieve the estate from the necessity of paying back tax. "If poor financial record; have been kept during the life of the taxpayer, however, it is sometimes difficult to prove these things without profmslonal helli- I hill/B worked on cases of this type when I have felt more like a private detective than an account- ant. The burden of proof. unfor- tunately, ts-appai-ently on the ex- ecutors of the estate, an t 1f 0° explanation of the additional in- come in question is to be found. it is assumed to be taxable, and an assessment is made which will in- clude inteiest and NMIIWS- “d teike a healthy slice out of the estate. (Continued on Pace 9) we; s,»