sufficiently general and clear and will differentiate these products from
those which the Government intends to continue to tax. All going well,
there is a possibility of a general exemption by the end of 1967. The
Association is continuing to work with the Government on this matter.

ee

TAXATION AND THE CRAFTSMAN

... from Canadian Craftsmen's Association Newsletter
On March 4th of 1966 a Brief requesting relief from Federal Excise Tax
for all artists was sent to certain ministers of departments in the
Federal Government who have an interest in this field. At that time we
received courteous assurances that the brief and the problems outlined
in it would be given consideration. We suggested alternative methods by
which relief might be offered based on the assumption that the govern-
ment intended to exempt visual artists and that there should be no intent
to discriminate against certain visual artists.

We were recently asked and agreed to support the appeal of sculptor
Gerald Gladstone against an assessment of $15,000 for a work
commissioned by the Federal Government for Expo '67. The prosecu-
ting government departments claim was that the piece in question was
not sculpture (which is exempt under the regulations) because it had
moving parts and incorporated motors, thus it was a 'mechanical
device" and subject to excise tax.

At the last moment the Department of National Revenue decided not to

contest the appeal, and while we rejcice for Mr, Gladstone, there will
now be no ruling on which we had hoped would be one outcome of the

appeal.

We were recently informed that the tax regulations have indeed been
revised, but examination of the present regulations reveal no general
relief on definition of art. In general the problem remains the same
with painters and sculptors exempted and other artists liable for the tax.

One minor alteration may be of interest to jewellers, potters and others
whose work may be of a sculptural nature. The old regulations exempted
sculptures and replicas if the Director of the National Gallery desig-
nated them as being of a "cultural character". This regulation