Winnipeg Free Press

Winnipeg Free Press (Newspaper) - December 7, 1979, Winnipeg, Manitoba 4 Winnipeg free Friday december 1979 theres Gold just waiting to be dug out of tax Hills by Walter Stewart up news service finance minister John Crosbie is looking for Money to balance his budget next week and he is he might want to have a quiet Chat with the lads Over at Revenue he will find a lot of Loose change hanging around the taxation system More than a lot of taxes go uncollected simply because the tax sleuths dont have the staff or Energy to go after the tax Gap has been estimated this for the first by Revenue it comes to the jargon Calls this the recover Able a phrase that conjures up the image of a Man with a net chasing a but is intended to describe what a spokesman the difference be tween what we get and what we could the department made its estimate of the missing loot by drawing on its own experience of the amount of Money to be collected for a Given every Penn spent in Sleuth ing brings in a Dollar in so by laying out a few million the Taxman could bring in another that is the frontal or blood fro Mastone Crosbie May also want to take a hint from Eric who was once Revenue minister in the Quebec government and later a Liberal Cabinet minister in Ottawa and is now an economist at Mcgill Kierans told the House of commons finance committee yesterday that Ottawa should begin to charge commercial interest rates on the billion in deferred taxes on corporation books in Load of interest that would not Only bring in a Load of it might persuade a number of companies the chief beneficiaries Are multinational giants pay off the that the or Friendly per Crosbie might also want to examine the innards of the tax tables them the a a funny thing happened to income taxes on the Way to As the demands of the tax collectors have grown increasingly the Vic Tims have Learned to the system is of particular Benefit to corporations and Rich in the last year for which de tailed tables Are Canada boasted of which More than half paid no tax the Book profit of Canadian firms that year came to billion and the tax Bill to an effective rate of 29 per that is less than the marginal rate 31 per cent paid by individuals earning More than annually the marginal rate is the rate levied on income above a base tax ducking has become so routine a part of the corporate system that reve nue Canada keeps two sets of one reflects Book profits before which is the Money the firms Tell the shareholders and the other reflects income for tax the difference Between the two Fig ures in 1976 was billion Money the corporations made but did not have to in corporations Laid out 52 cents of every Dollar collected in Federal income and individuals 48 this individuals Are paying 76 cents and the companies 24 All taxes have shot but while corporations Are paying roughly seven times what they did in individuals Are forking out 24 times what they used ancient Law following an ancient Law of tax phys the ability to Dodge rises with in for while Canada imposes a capital gains Only half the gain must be taken into in canadians with incomes of More than reported capital gains averaging to put it another those people escaped taxation on because they Only had to declare that amounted to a tax at their effective rate of per of per for canadians earning Between and that the aver age capital gain declared was and the tax saving this loophole was Worth 182 times As much to the Rich As to the lower registered retirement savings which allow canadians to Shel Ter provided tax savings of each to those at the top of the ladder and each to those lower interest and dividend deductions were Worth each to the very Rich and each to the the Gap is in the effective tax rate for canadians earning More than annually was per cent by it had dropped to per that was not because of a drop in tax rates there was none but because new loopholes meant that those people paid on less of their in the Slack had to be taken up lower in the average taxpayer declared an income of and paid at an effective rate of per cent a decade the average was and the effective rate per if every Dollar of capital gains was included in if corporation in comes were As they once on the same basis As individual earn if Ottawa collected interest on deferred the Money would come rolling partial figure the Canadian tax foundation study suggests that tax expenditures the polite name for All this ran Nyga zoo came to billion in the finance department puts it even in a release the department listed billion for a partial figure for 1979 showed billion in tax expenditures for this and that without even levelling off the tax and in the billion recoverable Gap and Crosbie could have enough to balance his budget and buy a shiny new without laying anything new on the dont hold your Mercier vetoes inquest review fumes Send store staff to Hospital ambulance attendants carry a woman out of a downtown Ottawa store after she was overcome by Carbon monoxide fumes Early she was among 15 employees of the metropolitan store on the Sparks Street mall and six ambulance attendants treated for Carbon monoxide poisoning at a local Hospital after fumes escaped into the store when a maintenance worker removed a door from a basement finance department sees potential Gas tax Bonanza continued from Page i Sand cubic the neb is already considering an increase in the Export Price Early in the new the neb has actually granted approvals for slightly More new Gas exports than most in the Industry had been realistically the neb has allowed All of the exports applied for by 10 Gas compan ies during the first five years and progressively smaller amounts for another three most Industry observers had expected no More than trillion cubic feet of new exports Over five All of the new sales requested during and 1984 have been with the exports then being pared Back by an arbitrary 25 per cent a year during the following three As a new exports will Rise quickly from an extra 370 million cubic feet a Day in 1980 to billion a Day in 1981 and a Peak of two billion a Day in Alberta Gas who now receive More than in extra revenues for each thousand cubic feet of Gas will be receiving at least million in extra Revenue in 1980 and million or More a year in and this additional Revenue is already being eyed by the Federal finance department As a lucrative new source of tax Money under the National Sel Suffi Cliency in the event Alberta wont agree to a tax on Domestic Oil and Domestic Gas production that will give Ottawa the billion it needs for its subsidy the Industry is expected to use this Gas report to push for More exports beginning in when this latest neb decision would begin to cutback the latest Short term the report also contains some bad news for Western companies planning to use new Alberta Gas exports to help the faltering billion Alaska High Way Gas the largest single by pan America Gas of is conditional Ort the Foothills consortium obtaining government approval to rebuild Southern portions of the alas a starting As Early As next year and the Alberta exports through the new pipeline will be phased out when alaskan Gas deliveries Are sup posed to Start at the end of this kind of conditional approval also threatens to complicate financing of the Overall since the rebuild exports Are More and More considered critical to obtaining private finance met Ned Fortt at the chief provincial judge Harold Gyles absolved the ramp of any blame in Enns death and commended the police for the incredible restraint which they last Jack the departments director of criminal prosecutions who had represented the Crown at the Enns told a group of reporters he wanted to slug free press reporter Cecil Rosher for an article Rosner wrote about the in quest rosters article said a review of testimony at the inquest left lingering it also said the Enns family criticized the handling of the inquest and what they Felt was a biased attitude against asks for specifics asked How he could determine whether there was Bias without Reading the Mercier replied youll have to be asked Why he had decided against an Independent review of the Mercier said i asked Pilkey to review it with a View to considering whether or not there was any justification or necessity in obtaining an outside on the basis of that and the material i have Given to you a copy of judge Gyles inquest 1 am satisfied there was an Independent in quest with counsel for the family Cross examination and a closing sub Mission by All witnesses who could provide Evi including several members of the Enns were called at the hearing by he the role of a Crown attorney before an inquest is simply to present the evidence before a who has the duty to make a Mercier regrets expressed i am satisfied All the evidence was Mercier said Montgomery has expressed his regret for the statements to reporters attributed to my Deputy minister advises that during exemplary service As a Crown prosecutor with the department for 17 Montgomery has to his knowledge always acted with Complete honesty and questioned about whether disciplinary action would be taken against Mercier i have indicated before i condone a situation like Montgomery has indicated he regrets making the statement and i am satisfied it will not occur maps to get raise despite restraint Ottawa up despite the progressive conservative govern ments pledge to restrain members of parliament will have their salaries increased privacy Council president Walter Baker made the announcement in the commons but did not say How much the increase will Stanley new democratic House had suggested the in creases be deferred until the results of a government commissioned study of salaries and benefits for maps Are legislation passed in 1975 provides for annual increases in line with in creases in the Cost of members of the commons now receive a year plus a tax free while senators get plus a tax free allow trials of hostages Iran says Ghotb Zadeh dates to be set continued from Page 1 Khomeini dispute with the United states is not the Only crisis he is embroiled ethnic turkish rebels have claimed control of the capital of Northwestern Azerbaijan and said any government peace Mission must be approved by the religious Leader whose reservations about Kho minis theocratic Constitution touched off bloody supporters of Ayatollah Mohammed Kazem Iran second important religious Leader after Khomeini and spiritual head of the country 13 million ethnic turks about on third of Iran population seized the radio and television station in the Azerbaijan capital of Tabriz they said they ousted Nureddin and his Fate was not immediately a spokesman said about eth Nic turks were involved in the takeover of the radio and to station in 500 Kilometres Northwest of he said they mistrusted reports their Leader had called for Calm and were furious Over the killing of two comrades out Side sharia Madaris Home in the deaths and eight injuries occurred wednesday during clashes be tween Khomeini supporters and sharia Madaris Many of whom boycotted the constitutional referendum sunday and the vote approved the islamic Constitution that made Khomeini supreme ruler for life and did not Grant autonomy to Iran ethnic Shariatmadar expressed misgivings about the Constitution because it largely excludes Iran secular Popula Tion from the government process and vests ultimate Power in the hands of the country religious soviet jets bomb areas held by afghan rebels from the news services new Delhi soviet air Force planes flying support for afghan government forces in the 19monthold civil bombed rebel held villages in strategic badak Shan a re port from Kabul said the report said soviet air Power was used after moslem insurgents seized major towns in the the rebels Are battling to overthrow president Hafizullah Amin and establish an islamic the Kabul source quoted an army officer As saying 400 government troops survived the recent fighting while about deserted to the 18 die As trains collide Spain a drive less train slammed into a stationary Pas Senger train at High Speed near Barce Lona killing at least 18 persons and injuring railway officials the drive less which was rolled out of a station and news Roundup accelerated for about 15 reaching a Speed estimated at about 111 Kilometres an hour before crashing into a train carrying about 100 Nobel dinner cancelled Oslo the Nobel foundation yesterday approved cancelling a dinner to Honor the 1979 peace prize Mother Teresa of and instead will donate an extra to her Mission in officials Libya to pay for damage Washington Libya has offered to pay compensation for damage to the embassy in a senior official said the disclosure followed the shutting Down of the ransacked embassy and the near suspension of diplomatic rela the official said the is still not satisfied with Libya he said assurances Are lacking that american diplomats will be Man faces three charges a Man injured in a shootout wednesday with ramp offi cers near Here wednesday will be charged with three including police said the whose name was not re is in stable condition in the intensive care Ward of a suit seeks million Cincinnati a class action suit seeking More than million was filed yesterday on behalf of the 11 persons killed and another 14 injured at the Rock concert monday by the who at riverfront the suit was filed on behalf of Todd and the Volkman was among those Hurt when fans hop ing to get into the coliseum before the concert crushed people at the front of the the suit two convicts die in riot two convicts were killed and 17 injured yesterday in a race riot that officials said was planned by Blacks at Soledad Blacks apparently planned and at tacked Whites and other minorities in retaliation for an assault by Whites on Blacks a spokesman for the state corrections department military to try 7 koreans Seoul the supreme court yesterday ordered former intelligence chief Kim Jaekyu and six others be tried in a military court in connection with the assassination of president Park defence lawyers had demanded a civilian a panel of four High court judges said there is Legal precedent for trying the seven civilians in a military scientologists face jail Washington five leaders of the Church of scientology were sentenced to jail yesterday for directing a conspiracy to steal government documents about the District judge Charles Richey sentenced four Church members to prison terms of four years and were fined Mary sue the fifth Leader and the wife of Church founder Ron was sentenced to five years in jail and was fined soviet naval strength up Washington the soviet Union has strengthened its naval forces in the Indian Ocean for the second time in As Many the Pentagon reported a defence spokesman said three additional soviet naval vessels have been raising the soviet strength to 18 ships from 12 two weeks there was no indication whether the increase in soviet naval activity is related to the iranian crisis and accompanying tensions in the israelis limits rallies Tel Aviv the israeli government decided yesterday to crack Down on palestinian rallies in the occupied West Bank of the Jordan River and the Gaza israeli television it said the decision to limit rallies came after West Bank mayors met and called for a palestinian state and an end to jewish settlements in territories occupied by Israel since the 1967 mid dle East the latest series of rallies resulted from the imprisonment last month and planned expulsion of Nablus mayor Bassam on Israel reversed its decision to Deport and jubilant palestinians welcomed the news yesterday with and claims of a palestinian demands issued san Salvador leftist guerrilla kidnappers of South Africa ambassador to Al Archibald demanded yesterday publication of a manifesto in 102 countries As a Condi Tion for his they said Dunn is in Good ;