covers property earned abroad and never remitted to England.428

Foreign corporations and companies not resident in England but exercising a trade there are assessable on profits earned in England 429 and on profits earned abroad and remitted to England for division among shareholders.430

A company "exercises a trade" in England when it carries. on business there at its own office, by means of its own employees. Thus a foreign telegraph company, having cables to England and offices there where it received messages for transmission, exercised a trade in England; as the court said a railway company would do which had a station at Dover and there took passengers to Calais.431 Where goods were consigned for sale to an English selling agent, the title passing upon sale and delivery in England, this was held to be exercising a trade in England.432 But this is the extreme case. Where an agent in England merely takes orders and transmits them to the company abroad, which there ships the goods ordered to the purchasers, there is no exercise of the company's trade in England.433 Income means the balance of gain over loss in any fiscal year, and cannot be taxed when there is no such balance.434

$566. New Brunswick.

There is no franchise tax, but the property is taxed as follows: Real estate belonging to a corporation or any joint stock company shall be assessed in the Parish where it is situated, and by such name as is hereinafter provided in the

428 Gresham Life Ass. Soc. v. Bishop, [1901] 1 Q. B. 153; Scottish Mtg. Co. v. Comrs., 24 Sc. L. R. 87, 14 Rettie, 98.

429 Atty. Gen. v. Alexander, L. R. 10 Ex. 20; Werle v. Colquhoun, 20 Q. B. D. 753; Wingate v. Inland Revenue, 24 Rettie, 939, W. N. 1898, 128. 430 Lindley, Companies, 6th ed., p. 614; Gilbertson v. Ferguson, 7 Q. B. D. 562.

431 Erichsen v. Last, 8 Q. B. D. 414.

432 Watson v. Sandie, [1898] 1 Q. B. 326.

433 Grainger v. Gough, [1896] A. C. 325.

434 Lawless v. Sullivan, 3 App. Cas. 373.

case of the assessment of the personal property of such corporation.435

Personal estate belonging to a joint stock or other corporation having its principal place of business within the Province may be assessed in the Parish where their principal place of business is situated, in the name of the corporation or of the president.436 A foreign corporation having a place of business within the Province shall be assessed in respect of its personal property within the Province, and upon its income derived from its business within the Province, in the same manner as to personal property as a joint stock or other corporation referred to in the 24th section, and as to its income as an inhabitant of the Province.437 The paid-up capital stock of a joint stock company at its correct value at the time of the assessment, shall be assessed as personal property of the corporation, but the amount assessed on any real estate of such company shall for the purpose of assessment be deducted from the value of such paid-up capital.438

Where the corporation pays a tax upon its capital stock, the stockholder is not assessed in the Province upon his stock or income from it.439

§ 567. Nova Scotia.

There is no franchise tax, but a corporation like an individual pays a tax on its tangible property. There seems to be no tax upon intangible property.

"For all purposes for which local and direct taxes are and shall be levied . . . all land and all such personal property as is hereinafter described, whether owned by individuals, copartners or corporations, shall be liable to taxation, subject to the exemptions," etc.440 "The words 'personal

435 N. Br. Consol. Stat. ch. 100, § 18.

436 Ibid. § 24.

437 Ibid. § 27.

438 Ibid. § 29.

439 Ibid. § 25.

440 N. Sc. Rev. Stat. ch. 58, § 3.

property' shall be understood to include all such goods, chattels and other property as are enumerated in Schedule A, hereto annexed, and no other. Schedule A: All personal chattels of every kind and description at their actual cash value, except as qualified beneath. The average stock of goods on hand of every merchant, trader or dealer, manufacturer, tradesman or mechanic; such average stock to be considered the mean between the highest and lowest amount of goods on hand at any time during the year, and to be estimated at cost price. One half the value of ships afloat, whether in the Province or elsewhere." 441

Foreign corporations pay an annual registration fee, where the capital does not exceed $10,000, of ten dollars; not exceeding $100,000, twenty dollars; not exceeding $500,000, forty dollars; exceeding $500,000, fifty dollars.442

§ 568. Ontario.

There is no franchise tax. A corporation pays taxes on its realty and personalty like an individual, according to the following provisions:

"Personal property shall include all goods, chattels, interest on mortgages, dividends from bank stock, dividends on shares of stocks of other incorporated companies, money, notes, accounts and debts, at their actual value, income and all other property except land and . . . property herein expressly excepted." 443

Exemptions from taxation include:

"24. So much of the personal property of any person as is equal to the just debts owed by him on account of such property, except debts secured by mortgage on real estate or unpaid on account of purchase money therefor."

"27. Rental or other income from real estate except interest on mortgage.'

441 Ibid. § 4.

1 444

442 Nov. Sc. 1903, ch. 16, § 21.

443 Ont. Rev. Stat. ch. 224, §§ 2, 10.

444 Ibid. § 7.

"All personal property within the Province, the owner of which is not resident in the Province, shall be assessable like the personal property of residents; . . . this section shall not apply to dividends which are payable to, or other choses in action which are owned by and stand in the name of, a person who does not reside in the Province." 445

"(1) The personal property of an incorporated company, other than the companies mentioned in subsection 2 of this section, shall be assessed against the company in the same manner as if the company were an unincorporated company or partnership. (2) The personal property of a bank or of a company which invests the whole or the principal part of its means in gas works, water works, plank or gravel roads, railway and tramroads, harbors, or other works requiring the investment of the whole or principal part of its means in real estate, shall as hitherto be exempt from assessment; but the shareholders shall be assessed on the income derived from such companies." 446

Extra-provincial corporations pay an annual fee which is fixed from time to time by the Lieutenant-Governor.447

$569. Quebec.

Corporations are specially taxed as follows:

66

'Every one of the following companies and corporations doing business in this Province, namely every bank carrying on the business of banking in this Province, every insurance company accepting risks and transacting the business of insurance therein, every incorporated company carrying on any labor, trade or business therein, every incorporated loan company making loans therein, every incorporated navigation company running a regular line of steamers, steamboats or other vessels in the waters thereof, every telegraph company working a telegraph line or part of a telegraph line therein, every telephone

445 Ibid. § 38.

446 Ibid. § 39.

447 Ont. 1903, ch. 7, § 53.

company working a telephone line therein, every city passenger railway or tramway company working a line of railway or tramway therein, and every railway company working a railway or part of a railway therein, shall annually pay the several taxes mentioned and specified in article 1145, which taxes are hereby imposed upon each of such commercial corporations respectively." 448

The taxation of insurance companies and public service companies is elsewhere considered. The special taxes on "incorporated companies" are as follows: 449

(a) One tenth of 1% on paid-up capital to $1,000,000, and $25 for each $100,000 or fraction above.

(b) An additional tax of $50 for each place of business, factory or workshop in the cities of Montreal and Quebec, and of $20 for each place of business, factory or workshop in every other place.

(c) The Lieutenant-Governor in case of a foreign corporation or a corporation acting abroad may reduce the tax, but not below of 1% on the capital employed in the Province.

448 Que. Rev. Stat. § 1143.

449 Ibid. § 1145, as amended 1895, ch. 15.