Winnipeg Free Press

Winnipeg Free Press (Newspaper) - February 18, 1975, Winnipeg, Manitoba Winnipeg free press tuesday february 18, 1975 change urged in gift succession tax Laws by Mary Ann Fitzgerald 1 Yec 1 Ress legislative reporter changes in Manitoba s gift tax and succession duty legis lation could help solve the problem of non resident owner ship of land in the province the agricultural department of the Bank of Montreal monday. 1974 through to the present jul of Manitoba estates settled 120 were taxable and approximately 20 per cent of the taxable estates were Farmers. The total received by the provincial government in estate taxes was million. Said asked where the government would tax to replace this in a Brief to the legislature s million should succession Long term consequences should be considered. Any new legislation should be limited to Deal with the problems. The association said it believed the existing systems of control Are More than sufficient to meet every subsisting with respect to land use committee the Baak said Manitoba and Saskatchewan Are the Only provinces which give no special treat ment to Farmers under Succes Sion duty legislation. It is submitted that one of the prime reasons now causing duties be removed or. Anhang said when aut Opac fell Short of Money you put on he said the government should also take into account the Cost of collecting the tax. The Federal income tax a non residents or the provincial government is their desire t avoid the estate being Force to sell the farm under Stres. Says the Brief pro Sentell by lawyer Abe Anhang on behalf of the Bank s agricultural department. In the Brief and during the question period or. Anhang contended Manitoba s gift tax Law is "discriminatory1 against the Farmer wishing to Transfer his land to members of his family. The present exemptions Are for a spouse or for a son or daughter. Or. Anhang suggested exemptions should be raised be cause of the increase in land values. He suggested that at the going Price of an acre even a relatively Small holding would now be taxable. In terms of current property values in Manitoba is not realistic it is time now to overhaul the Legisla he said in reply to questions from Jim Walding or. Walding suggested a son inheriting a farm Worth would have five years to pay the succession duty while a Young Man Start ing out on his own would have to borrow the at a 10 per cent interest rate and would pay a year in in Terest alone. Is that asked or. Walding. Or. Anhang suggested the father had worked All is life to build up a family farm to pass on to his children but the province insisted on taking an other tax bite. Succession duties imposed by Manitoba created a Dis incentive to the Farmer to pass his land on to his he said. Replying to agriculture min ister Sam Yuskiw t. W. To 1 provincial succession Hanson nip St. Matthews and Ken Dillen nip Thomp or. Anhang said that in duties and gift tax acts Are a variance the Brief suggested. The Federal act provides of a tax free rollover upon the death of a taxpayer of Ian used by him in farming to i wife or children. But the Brief said unless the province has a Generou exemption i can see no Way that a farm can be transferred from a father to a son without a tax gift tax exemptions Var from in Quebec and in Ontario to nil in the Brief said. The present Law would appear to be inconsistent with the present stated policy of the government to keep resident Farmers on the land. If the government wishes to Dis courage the Sale of Manitoba farm land to non residents i should take positive Steps required to encourage the order y Transfer of the family farm rom one generation to the next avoiding the incidence the Manitoba real estate association also suggested the government look at existing legislation which imposes Limi actions on land use before pm Larking on new legislation. In a Brief presented in co operation. With the Winnipeg and Brandon real estate wards the association listed 2 provincial statutes Munici bylaws and even some fed eral legislation which directly r. Indirectly put limitations on he rights of property owners. Governments should ensure Fiat before additional Laws Are passed they have exhausted the capacity of existing Legisla Tion to meet existing or emerging problems arising from Pri vate ownership of property in it said. Before further limitations Are applied to private owner ship the need should be demonstrated beyond reasonable and recreational i surprising that creditable farm find the subsidized five per cent rental payment for Macc Manitoba agricultural credit Corpora Tion tenant Farmers highly repugnant. It is the tax Money paid by themselves and other Manitoba taxpayers which constitutes a source of funding for the government s land lease pro the Institute said. The a geologists suggested the practice of utilizing govern ment funds to establish a farm business directly competitive to the existing Farmer was unfair illogical and the subsidized Farmer gained the competitive advantage their submission said. It labelled As a very simplistic approach the singling out of foreign interest in farm land As the major contributor to rising land prices. Individuals residing out of Canada reportedly own .82 per cent of Manitoba s 19 million acres of farm land it said. Public need agricultural with the possible exception Only on non resident non Canadian the legislature should seriously ascertain the nature and scope of the problem and legislate against it to the extent absolutely necessary and no realtors in Manitoba have noticed that in land banking undertaking and land develop ment programs ultimate land costs Are As great As if not greater than the ultimate land Cost of such lands purchased directly from private owners it said governments i n Selling demonstrate a conspicuous awareness of Market value but governments in buying land have not demonstrate any special or unique techniques. And skills which lower the Cost of the Brief was presented on behalf of the real estate organizations by Graeme Haig who s also president of the Mani Toba chamber of Commerce and a past president of Mani Oba s progressive conserva Tive party. The submission also suggest e d consideration should be Given to the Impact of Provin Cial and Federal tax policies on and ownership by individuals mall proprietorship Ane Small corporations and to the Impact of succession Legisla Tion. It said the question foreign ownership of Rural land hould not be separated from foreign ownership of Urban and. Foreign ownership of land in an Urban Community has never excited Adverse Public interest and indeed some of the most important and useful land Assembly and developments for Urban use have been undertake n by foreign owners and de clopers during Manitoba s his the submission said. The real estate organization Aid the Public should recognize the importance of proper y rights and not interpret them As sales rights. The Manitoba Institute of geologists submission aimed Farmers could be justifiably concerned when they be their own Money in the form of tax dollars being used to deprive them of the Privi lege of owning land. The provincial government through the Manitoba agricultural credit corporation is in new people to enter farming with the justification being primarily the attainment of social objectives. It is not the private land tenure sys-1 Terpeny overlapping or gaps Tern is fundamental to the sue-1 Between these acts Cess Ful development of Cana As Well he recommended to a s agricultural Industry the the government for Reading 12 submission said. Books and papers of the sub a government policy of Jet of land use. Other representations Public ownership of farm land designed to prevent a decline in farm numbers Means also control of farm size. If this is carried on to its natural conclusion it will mean the prevention by deliberate govern ment action of the Normal and essential process of farm enlargement and the committee also heard monday a Brief from the National Farmers Union urging the need for a National land use policy under which agricultural land would be protected. Lyle Ross presenting the Brief said where the concentration of ownership appears undesirable legislation should be introduced to place upper limits on the amount of land that May be owned or con trolled by any individual farm corporation co operative o r non farm corporation. Gerry Ackerman a farm economist from the University of Manitoba made his second appearance before the commit tee monday. He said there were about 46 provincial acts relating directly or indirectly to land use and he urged the of merriment to study the in heard monday included those of Waller Seneshen of 706 Buck Ingham Road Winnipeg and Roger Saunders an East Sel Kirk area Farmer. Or. Seneshen suggested the government take Over Al foreign owned land in the prov Ince and sell it to University students for farming. It makes me feel like less of a Canadian when we have foreign he. Told the committee. Or. Saunders said land use not foreign ownership was the major Issue. He urged that land use regulations be set up to preserve agricultural land. Government ownership of land in t the answer he said. No flies on zip men Birmingham England up workers at Britain s biggest Zipper factory which supports a buy British Campaign were amazed to find that zips on their overalls were made in Japan. A company spokesman said we appreciate our workers concern and from now on no More imported zips will be used. Schmidt ill Bonn a West German Chancellor Helmut Schmidt was taken ill with pneumonia monday and All his appoint ments for the remainder of this week cancelled. Govern ment spokesman Klaus Boell i n g told reporters Schmidt went to bed by order of his doctors sunday. Data a memorable business seminar Holiday inn Winnipeg downtown 350 St. Mary Avenue at Hargrave St 942-0551 Manitoba businessmen there is still time to Register for the pre registration deadline for operation Access has been extended to february 21 1975 if your forms Are not mailed by this Date they can be presented at the registration desk on february 25th operation Access being held at the Winnipeg convention Centre february 26 27. Is your Opportunity to learn and discuss the various aspects of How to do business with the Federal and provincial governments. Sponsored by the Federal department of Supply and services and the Mani Toba department of Industry and com Merce operation Access is designed to increase manufacturing and Indus trial development in Manitoba through government purchasing. Senior officials from both Levels of government and Crown corporations will conduct seminars on specific commod Ity areas and will be available to you for individual discussions. Commodity displays covering an area of Square feet will feature photo graphs audio visual presentations and hundreds of products to better acquaint you with the variety of goods purchased by governments. Regli Rallon i at the convention Cen let lobby february . February 26, . People unable to Register before . Will be permitted to do so through out the Day if you have not received your registration form and wish to attend operation Access please write to operation Access 508 Norquay building Winni Peg r3c Ops or phone 946-7598. If you Are going to pre regts Ler plea a mall your form no later than february 21.1975. The honourable Jean Pierre Gover minister. Supply and services Canada the honourable Leonard s. 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