Internet Payments

Secure & Reliable

Your data is encrypted and secure with us.
VeraSafe Security Seal

Lethbridge Herald Newspaper Archives

- Page 17

Join us for 7 days to view your results

Enter your details to get started

or Login

What will you discover?

  • 108,666,265 Obituaries
  • 86,129,063 Archives
  • Birth & Marriages
  • Arrests & legal notices
  • And so much more
Issue Date:
Pages Available: 34

Search All United States newspapers

Research your ancestors and family tree, historical events, famous people and so much more!

Browse U.S. Newspaper Archives

Select the state you are looking for from the map or the list below

OCR Text

Lethbridge Herald, The (Newspaper) - November 4, 1971, Lethbridge, Alberta Thursday, November 4, 1971 THE LETHBRIDGE HERALD IS The lax column Plan now for new tax system By I. H. ASPEI! Will) approximately M flays to go before the new Canadian tax system goes into effect, tax- payers across the country should be stalling the process of planning their affairs so that they enter the new wrokl put- ting forward their best tax face. This process is affectionately called "lax planning" by pro- fessional advisers to taxpayers has been said more than once that the new system is so complex, the average business- man will have lo spend a con- siderable amount of time with liis lawyer and accountant. So much so that one observer has suggested the name of the new Income Tax Act should more appropriately be "An Act to Provide Financial Relief to Needy Lawyers and Accoun- tants." Even if the new law is de- layed, or as some have suggest- ed, phased in, businessmen should now be finalizing their. ing themselves and at he very affairs. Tax planning is simply least, deciding what Ihey wi I Ibe process of structuring one's do if the bill passes substantial- proci investment or business affairs in such a way as allows him to accomplish his normal social and commercial objectives and, at the same time, pay only as much tax as is absolutely more and no Every new tax system has Its traps and pitfalls awaiting the unwary. The function of the tax adviser is to act as a guide, steering the taxpayer through the maze of new rules and reg- ulations. A misstep can be time- consuming and costly in tax terms. BE PREPARED There may be many more amendments to the tax bill be- fore it clears Parliament, and for that reason taxpayers should not stampede into reor- ganizing their affairs. Never- theless, they should be ready- Better insurance service urged EDMONTON (CP) The in- sunuice industry must improve its services to the public if it doesn't want more govern- ment intervention, Attorney- General Merv Leitch said here. He was addressing a meet- ing of the Insurance Agents' Association of Alberta. Although he believes "very otrongly that governments should only become involved with private enterprise when private enterprise has failed to provide the service required by the there is a possibility of more govern- ment action in the insurance industry if the public is satisfied. BRING PRESSURE dis- "It is inevitable that the gov- ernment will do what it be- lieves the majority of the peo- ple want it to do. "And if the majority of the people feel they are not being properly served by the insur- ance industry were going to bring pressure to do something about it." Mr. Leitch said the industry could serve the public better than could government but he told the agents: "You must go farther than that and convince the people of the province that you are able to, willing to, and are, in fact, doing it better. "In short, it's (the industry) got a job of convincing the public that no one can do it better than the industry can." He recommended insurance policies be rnad? more under- standable because after spend- ing "a substantial part" of his 20 years in the law practice he still finds interpreting some policies "an exceedingly diffi- cult, frustrating" task. He also recommended insur- ance agents change their ap- proach to handling claims, re- minding them that a person making a claim often is upset and, therefore, unreasonable. ly in its present form The most obvious step to be taken now is the accumulation of data relating to the value of capital assets, in preparation for the capital gains tax and Valuation Day concept. Al- though there is little difficulty in determining the value of widely traded stocks and bonds, untraded bonds, such as muni- cipal obligations, require atten- tion. Similarly, closely held and infrequently traded stock in semi-public companies, should be apprasied independently, whether the shares are part of the minority or control groups, since the daily trading price is not necessarily a reliable guide to the fair market value. Personal assets such as cot- tages, paintings and the like, should be examined by some- one independent of the taxpayer and evaluated. It may be handy later to have a letter from an expert stating his opinion of the current value, even though neither the taxpayer nor the revenue department is bound by these valuations. These valu- ations will be influential with tax authorities. FAIR VALUE By far the toughest, but most important valuation that should be made soon is the fair mark- et value of business asets such as the shares of private com- panies, farms and real estate. Their fair market value is sub- ject to wide variance of opinion at the best of times, but one can be sure that he will at a disadvantage in later disputes over the taxable portion of any capital gains realized after the new system begins, unless he can prove the value these assets had when the system started. Although asset appraisal should be occupying the attenr lion of taxpayers, it is by no means the only aspect of the new system they should be con- sidering. Pension plans should be re- viewed in the light of the amendment that increases the maximum contribution by each of the employer and employee from to per year. Since a dollar of tax deferred is a dollar of tax saved, compan- ies and their executives may structures and increase their pension contributions. Companies which provide their employees with the use of a car might do well to review that policy in light of the fact that the employee will be taxed for his personal use of the em- ployers car. The tax is based on the cost, not the value of the car. It may be that there is a tax saving for the employees if the companies sell their auto fleets on a lease-back basis. HIGHER PAY Because of the reduction in the top rates of tax, some com- pany executives will now have significantly higher take-home pay. Companies will have to de- cide with these employees whe- ther that gain should go to the shareholders or to the employ- ee. In some cases, salary ad- justments may be in order. Life insurance programs ought to be re-examined against the posibility of double death taxes. The first tax arises in those provinces which decide to levy an estate tax; the second arises because all unrealized but accrued capital gains are taxed on one's death, even if his assets are not sold. In these cases life insurance may be the only means of providing the liquid cash to meet the death taxes and prevent a forced sale of the taxpayer's business or investment assets. These are but a few of the steps taxpayers should be con- sidering as the date of the new I system approaches. In subse- i quent commentaries, other pre-' ventative medicine will be dis- cussed. (Mr. Asper Is a Winnipeg lawyer) Studded tires law relaxed ST. PAUL, Minn. (AP) Studded tires will be legal in Minnesota this winter, but only for visitors from states or provinces where studs are legal. The maximum is 30 days a year. Studded tires were banned in I the state this spring following studies which indicated they' damaged roads. Two sides to this story Some people insist that Double Distilled is a robust whisky. It is, But first and foremost it's a smooth whisky. They also insist that it comes itiari v "expensiveilooking bottle. It does. I But at an _ inexpensive price. Other people insist that Double Distilled is a smooth whisky. It is. But first and foremost it's a robust whisky. 'I hey too insist that it comes in an bottle. Which it does. But at an inexpensive price. DOUBLE DISTILLED DOUBLE DISTILLED TheRobustWhisky. Culved 01 Canada Lid.. Gimii. Mimilob.1. get sains! with Brunswick WINTER XL tough, wide tread design cleans itself as it moves through snow guaranteed 34 months against tread-wear out PRICE 19.94 21.94 23.94 19.94 21.94 23.94 SIZE 590-15 E78-14 F78-14 G78-14 H78-14 F78-15 G78-15 H78-15 Blackwall prices add 2.00 for whitewall Stock F78-14 Blackwall Installed STEEL SAFETY STUDS AVAILABLE Brunswick Mark POLYESTER wide tread design with polyester cord body dual whitewall guaranteed 30 months against tread wear out SIZE PRICE 20.94 E78-14 F78-14 G78-14 H78-14 F78-15 21.94 23.94 25.94 27.94 23.94 25.94 27.94 dual whitewail installed Brunswick Batteries Open Monday and Tuesday 9 a.m. lo 6 p.m.; Wednesday 9 o.m. to 1 p.m.; Thunday and Friday 9 o.m. lo 9 p.m.; Salurday 9 a.m. lo 6 p.m. w FOR APPOINTMENT PHONE 328-8014 Collegf %ppfogi Mall 2025 Mayor Magrath Drive ;