Winnipeg Free Press

Winnipeg Free Press (Newspaper) - November 20, 1978, Winnipeg, Manitoba Abbt novt Sefi severe measures hit Small corporations by Joe and William Buckwold the accompanying finance minister Chretien budget address is skimpy so that exacting Commey Italy is actual amendments to the income tax act May vary from the impressions one is left with after read ing the budget one major it will undergo severe change some Small corporations Are now going to have a penalizing rate of tax imposed on their corporate in Active business income of Small business within certain is taxed at a 26 per cent admittedly this is most often a favourable rate com pared to rates an unincorporated proprietor or employee would pay on similar incomes to take advantage of this favourable most corporations have been claiming that their activities Are Active businesses even though their incomes May substantially be earned1 from no Active investment announcement John Park general Man Ager of seeded Canada limited of Carman announces the appointment of John born at Park brings six years experience to seeded Canada limit tote courts have been inundated with eases and the Law is finally re solving itself to admit most Eor Sofaie Ivity is Active business Eli Gible of preferential Compo Fate the minister of finance now Calls this a loophole and is proposing to define More closely who is eligible of such preferential rates of the definition of Active business will essentially consist of certain listed business types if your business Type int on the qualifying your corporation will pay 51 per cent corporate tax in Mani the list int Complete but apparently the follow ing businesses will not be on the list 1 service corporations essentially All corporations which produce income by producing a service As opposed to manufacturing or leasing will pay High corporate natural con logging and transportation sectors be on the list and remain Eligi ble for the special Low corporate tax incorporated professionals will not be eligible for the Spe Cial Low corporate rate in most profession als Are now allowed to in corporate in any but those that Are such As Engi neers Are going to be severely effected by this Bud get management incorporated insurance real estate Bro kers and investment councillors Are now All going to be denied the Low rate of downtown space for retail or Man fac Square feet Square Teet year lease 9420463 ask for Bill or Phil Rosen we wont waste your time on Small at we get right to the useful everyday simple Well get you thinking in your new language and familiar with it in As Little As ten make your appointment Berlitz years we 1878 the Lombard place Winnipeg 9423149 translation and interpretation services private and total immersion courses also available Aii courses tax deductible Heidi a me r v a Jao l ath authors card tamers who have ported their services will to lot get be allowed the special most singly perhaps incorporated tradespeople Are apparently to be excluded As Well 2 investment com panics interest and rent Al income will no longer qualify for special Low corporate to the millions of employed taxpayers in this the plugging of this so called loophole May seem Welcome since they pay personal and thereby often higher tax on similar but High corporate taxes go beyond equating the corporate form with individual tax an incorporated service Type business having a tax Able income of will now pay 51 per cent in on that entire if the same were earned by an employee or a proprietor business Only about of that income would be taxed at a highest rate in Manitoba of 49 per cent about would be taxed at lower rates and the combined effective rate on the entire would be approximately 26 per cent As opposed to the proposed 51 per cent corporate to avoid this penalizing an individual proprietor using the corporate form and employed by his corporation should now pay All of his profits out of the corporation As a thereby putting himself Back in this the effective tax rate Posi Tion of 26 per a real problem arises if salaries cant be utilized to eliminate corporate Revenue Canada has always taken the and often the courts have that the in order to be deductible expense of the corporate pm must be most Small service Type corporations wont have a problem since it is reasonable that the proprietor employee been titled to receive As salary the full profits of the corporation that arise due to his personal How there May be prob lems in at least three areas 1 where All or some of the shareholders of the vice corporation Are wives or children of the proprietor who dont really work for the corporation 2corporate profits Are often earned by the efforts of employees other than the proprietor employee 3 profits from invest ment businesses have no relation to the work formed by the proprietor the last category is Likely the most questionable policy in the new budget example individual investor with in vestment income say in individual tax thereon effective rate 51 per cent in Manitoba assuming no other in after tax disposable income to individual investment company with investment in corporate tax 088 Liiv Stew 000 after tax balance in shareholder tax after tax Dis Posable income to if Dividu Ai in effective tax rate per cent is per cent in to avoid this the corporation would have to pay a but Revenue May rightly use to deny such High salary As a reasonable expense of the corporation carrying on the investment of a salary is de but Revenue Canada Only allowed As a reasonable salary Deduc then the corporate and individual tax would be Over or More than 85 per cent tax on a single earning of our tax system was obviously never intended to be As confiscatory As this extreme example shows but it is an inevitable trap the proposals seem to investment income of corporations was never sup posed to be regarded As business to avoid the penalty created by a High corporate tax on in vestment income earned by such corporations were to receive a re fund of certain corporate taxes but the budget now effective that a dividend paid out of income from a business will not qualify for a dividend refund to a private the courts metals announcement John Thiessen general Man Ager of seeded Canada limited of Carman announces the appointment of John Thiessen to the Posi Tion of Plant manager for the new seeded Plant at car Thiessen was born and educated in the Winkler Plum Coulee area of Mani Thiessen brings five years experience in the Grain Trade to seeded Canada Dick company off Canada Winnipeg Gold 11 today Winnipeg up Winnipeg commodity Exchange monday 400ounce contracts open High Low close jan79 20120 aor79 21370 oct79 21950 jan80 100 ounce contracts nov78 feb79 may79 aug79 nov79 22090 London metals foreign Exchange Montreal up mondays Tor Elan Exchange nominal Selling rates at ii est supplied by the Bank of Montreal these rates Are called nominal be cause they fluctuate during the Day and vary at each Australia Dollar Austria shilling 0855 Bahamas Dollar 11800 Barbados Dollar 5910 Belgium convertible franc Bermuda Dollar 11800 Brazil Cruzeiro 0654 Bulgaria lev i 3209 China rent incl 7380 Colombia peso 0362 Czechoslovakia Crown Denmark Krone East Carlbean Dollar France franc Germany Mark Greece drachma Hong Kong Dollar 2475 India Rupee Italy lira Jamaica Dollar Japan yen Kuwait Dinar Mexico peso 0540 Netherlands Guilder 5660 new zealand Dollar Norway Krone 2325 Poland zloty Portugal escudo Romania leu 2576 saudi Arabia rival 3550 Singapore Dollar 5395 South Africa Rand 13580 Spain peseta Sweden Krona 2695 Switzerland franc Trinidad and Tobago Dollar United kingdom Pound 2 2805 United states Dollar Ruble Venezuela Bolivar free quotations in Canadian London a closing metals monday in pounds Sterling a metric ton Silver in Pence a Troy ounce Copper spot Copper future tin spot tin future Lead spot Lead future 382 383 Zinc spot 5 Zinc future 357358 Sliver spot Silver future London Gold London a closing Gold prices in dollars an ounce zurich199 125 Hong noon Dollar Montreal up Dollar in terms of Canadian funds at noon today was up 13100 at Pound Sterling was up at in new the Canadian Dollar was Down 9100 at and Pound Sterling was up one cent at Kent Breen the a b Dick announces the appointment of or Kent Breen As sales manager of the Winnipeg Branch Kent has 15 years experience in the graphic arts and copy duplicating Field Linda Hill the a Dick co announces the appointment of is Linda Hill to the word processing marketing Winnipeg Branch have now virtually defined most investment mime As business income 6 a Cor a Fatien and most invest Mem companies have been thereby filing tax returns in that basis few it appears from the budget material that finance has taken an extremely Tive stance and appears to be saying youve abused the intention of the legislation in the past and now youll pay for for those who think that just the wealthy tax planners Are affected by rules relating to investment consider that there Are countless people who have incorporated vestment companies of other than tax for sound estate planning advice has often been to recommend ment corporations to facilitate the administration of an estate on death Active businesses have turned into investment companies on the retirement of the share individual partners use corporations As an easy administrative format for Many services and in vestment corporations Are going to have to live by two new rules pay As reason ably High salaries As Possi ble and avoid dividends until another budget re moves the penalty of incur Hershfield is an associate of Sinkln Cantor and associates of Winnipeg and Buckwold is a Winnipeg chartered London stocks London up closing Stock quotations monday in new Pence unless pounds Are a indicates that quotations includes Dollar Premium based on latest conversion associated Brit foods 68 Babcock and Wilcox 148 Bass Charrington 161 Bice dbl Voors 380 Boc International 67 2 boots Bowater 175 j Brit am Tob 270 Brit assets Trust Brit Petroleum 912 broken Hill prop buffers 10 1116 Burmah ii 71 a Canadian Pac m3a charter cons 123 cons Gold 167 courtault sell de Beers 338 distillers 198 Dunlop 63 Emi of Geduld 16 1516 Gen elec 310 2 Glaxo 522 i grand metropolitan hotels 104ji or on stores a 296 guest keen 255 Hawker Sld Delev 220 Hoover a 241 Ici Imp Tobbi Al nil Thomson 255 i Kloof 670 Marks and Spencer 84 Metal Box 300 Minorca 152 xphlllps845 poll Kloton Bros 275 i Plessey 104 rank a 240 Rio Tanto Zinc 229 i Roa Consol 71 j Sel Trust 430 second Scott inv 94 Shell t and t 570 2 Tanganyika 162 j Thorn 348 tube investments 368 Ultra mar 225 Unilever 536 Union corp 250 vials 17516 Vickers 190 j Western diet Oncin 27 2 Western deep level 9 1316 mines 90 w holding Woolworth 67 2 zambian Copper 12 Brit transport 61 i Brit cons 20 Treasury 8j 90 516 War Loans 29 service personnel i apr needed in key positions in service apply to George Anderson or John Brenan direct company distributorship part time full time earning potential not vending or a we provide you provide t exclusive patented reliable background products of t accounts Are established credit in your area Cash income t no Selling required t resell option t dependable automobile t time available t minimum investment plan plan plan for information Call collect Cooper 416 9616954 or write marketing department 8th floor m5s 2v6 Austin v of v o Jaguar m g 235 main Reading National Ceramic tile and carpet distributor requires a sales representative to Call on established dealers in Manitoba and Thunder Bay areas experience m tile and carpet sales preferred but notes please apply to Box 361 free press executive chef the Sheraton Cavalier has an opening Lor a chef with proven ability in Quality and volume production of food this person must be Able to assume responsibility for food costing and Complete supervision of Kitchen a Titi together with sous chefs Good Safary and company benefits to the Appi icon Wilh proven ability Apphy Dols must have resume of past experience with references apply to the Central Sheraton sask City of Prince Albert purchasing agent the iffy of Prince population approximately located in Northern Saskatchewan recreational acid resource development area requires a purchasing the successful applicant will be responsible to the City commissioners for the Complete operation of fhe purchasing department providing centralized purchasing control to All City Purchase of materials and supplies responsible for storage and control of qualifications senior matriculation courses and training in purchasing preferred several years related experience in a purchasing and store keeping operation thorough knowledge of All aspects of purchasing preparation of ten sources of supplies Quality standards and Federal and provincial taxation suitability of salary to per annul Liberal fringe applications containing a resume of qualifications and personal background and any other relevant material will be received by the undersigned up to and including december Parker personnel director civic administration building 1521 6th Avenue West Prince Saskatchewan s6v 6k2 buyer required by triple e Canada due to expansion in our purchasing depart ment we require an individual with years purchasing applicants with a combination of training and experience Are also invited to triple e is Western Canadas leading manufacturer of recreation vehicles and manufactured the company provides a competitive salary and Benefit to apply Contact personnel manager triple e Canada Box 1230 Rog 2x0 3254361 4534315 Winnipeg direct line mechanical technologist is required for a transportation equipment manufacturing firm to work in their research and development duties would include working with engineering staff in product design and testing components and As Well As other related candidate must be technology or equiv with minimum of two years related expert preferably in the automotive knowl Edge of testing equipment and procedures a applicants should Forward a detailed resume to Box 367 the Winnipeg free press required 3rd class stationary Engineer Ontario certificate for mine powerhouse with Thermal rating of 683 Low pressure natural Gas fired boilers 225 in total and 2 Bellis Morcom compressors 800 hourly rate of plus Cost of living shift and full Range of fringe qualified persons Are invited to enquire at the nearest Canada manpower Centre or write for application to caland Ore company limited Ontario pot 1co insurance claims adjuster experience in property and casualty adjusting a knowledge of automobile claims an excellent benefits salary commensurate with for further information Contact personnel department 9430811 273 owner operators required for general freight and machinery haul from Manitoba into the United states and Western steady year round 739 Lagimodiere 3042576666 ;