LATCHFORD, J.:—On the 26th November, 1919, an information was laid under oath before Mr. Kingsford, alleging that the Thompson Manufacturing Co. Ltd. did, on the 3rd November, 1919, and on every day thereunto following up to and including the 8th November, 1919, fail to make a return of information for the year 1918 required of the company to be given under the provisions of sec. 8 of the Income War Tax Act, 1917, 7 & 8 Geo. V, ec. 28, and amending Acts (Dominion). (The Income War Tax Act was amended in 1918 by 8 & 9 Geo. V, c. 25, and again in 1919, by 9 & 10 Geo. V, ce. 55.)
The charge was duly heard before Mr. Kingsford on the 17th December, 1919. The accused pleaded guilty to the charge. It was convicted, and a penalty of $200 and costs was imposed.
At the request of counsel for the informant, the learned magistrate has submitted for the judgment of the Court the questions :—
(1) Whether he was required by subsec. (1) of sec. 9 of the said Income War Tax Act, 1917, and amending Acts, to impose a penalty herein of $100 for each day on which default continued.
(2) Whether he was entitled under the said Acts to exercise a discretion enabling him to impose a penalty of $200 for the 6 days’ default for which the accused was convicted ?
Sec. 7 of the Income War Tax Act imposes on every person liable to taxation under the Act the obligation of making, before the 28th February in each year, a return of his total income during the last preceding calendar year.
Under sec. 8, the Minister of Finance may, inter alia, require a return containing such information as he deems necessary to be furnished him within 30 days ; and any officer authorized thereto by the Minister may make such inquiry as he may deem necessary for ascertaining the income of any taxpayer.
For every default in complying with the provisions of secs. 7 and 8, sec. 9(1) enacts that "‘the taxpayer, and also the person or persons required to make a return, shall each be liable on summary conviction to a penalty of $100 for each day during which the default continues.”
The company pleaded ""guilty” to being in default for the number of days charged in the information. It was a default for each and every day of the 6 days so charged, and was liable to no less a penalty than $100 for each such day.
No discretion was left to the magistrate to limit the number of the days for which the penalty was to be imposed, or to reduce the amount of the penalty below $100 for each day’s default.
In contrast to the rigidity of subsection 1, subsection 2 allows a wide discretion in fixing the amount of the penalty that may be imposed for making a false statement.
Accordingly, the first question must be answered in the affirmative and the second in the negative.
No order as to costs.