Canada. Royal Commission on Co-operatives : The Royal Commission on Co-operatives was established under Order in Council P.C. 8725, 16 November 1944, under Part I of the Inquiries Act (R.S.C., 1927, c.99) and on the recommendation of the Minister of Finance. The Commission was mandated to inquire into: (a) the present position of cooperatives in the application the Income War Tax Act and the Excess Profits Tax Act, 1940; (b) the organization and business methods and operations of cooperatives, and other matters relevant to the application of income and profits tax measures; (c) the comparative position, in relation to taxation under these acts, of persons engaged in any business that competes with cooperatives; and report all facts that may determine what would constitute a just, fair and equitable basis for the application of the Income War Tax Act and the Excess Profits Tax Act, 1940 to cooperatives and to persons or groups other than cooperatives that conduct business in a way similar to cooperatives, such as making payments (commonly called patronage dividends), and to make recommendations for amending existing laws. The Commissioners were Errol Malcolm William McDougall, Chairman; B.N. Arnason, G.A. Elliott, Jean-Marie Nadeau and J.J. Vaughan. The Secretary was G.W. Ross.
As the World War II progressed, a strong feeling developed in the business community in Canada concerning the apparently privileged position of cooperatives, mutuals and similar bodies. Canadian cooperatives had been exempt from taxation under the Income War Tax Act (4 Geo VI, c.34, 1940) and their exemption during the war period, when burdensome tax rates were retarding other forms of business, stimulated a public demand for an inquiry. In view of the obscure terms of the provisions under which they claimed tax exemptions, there were indications that the leaders of the cooperative movement were anxious to have their status under the tax laws clarified. To consider these, and other related matters, the Government of Canada appointed a royal commission (See J.H. Perry, Taxation in Canada, Toronto: University of Toronto Press, 1951, pp. 75-76; and J.H. Perry, Taxes, Tariffs and Subsidies: A History of Canadian Fiscal Development, Toronto: University of Toronto Press, 1955, pp. 412-413).
Hearings of the Commission were held in Halifax, Moncton, Quebec City, Montreal, Ottawa, Toronto, Winnipeg, Regina, Calgary, Edmonton and Vancouver from 15 January to 3 May 1945. Further hearings were held in Ottawa on 25-27 July 1945. The Commissioners also visited Great Britain and the United States. The Commission received 175 briefs. RG33-25 General Inventory
