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Lethbridge Herald Newspaper Archives

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Lethbridge Herald, The (Newspaper) - September 30, 1972, Lethbridge, Alberta 20 THE 1ETHBRIDGE HERAIO Soliirtlay, Seplombcr 30, EATON'S Are there 'corporation Max Factor's New Eye-Cology Colors Max Factor's Eye-cology Collection is here! A stunning line-up of eye shadows in nature's own clear, clean colours. Inspired by the sky above, the earth below and ihe sea around us, Max Factor has designed five series of five-colour combination compacts, each with a dual-tipped applicator brush to do your eyes justice. Join ihe Eye-cology movement at Eaton's now! Max Factor Lash Maker Comb-on mascara helps your lashes.look longer, Ihicker, fuller without smearing or imudging. Fast drying, wearproof formula ihnt separates, end colours dial once." In black, brownish-black, brown, midnight green, navy bluo Ei95 and plum burgundy............................................... Stars for your eyes In multi-bright Star Shine, Twinkle Blue, Green Shino, Twi- light Aqua, Lunar Lilac. Moon glow In lilacs: Lunar lilac, Moon Mauve, Dusty Plum, Sundown Pink and Moonlight Blue- Earth tones in Frosted Sand, Meadow Green, Winter Earth, Lunar Lilac and Sapphire Frost, Sky blues. Slue Sky Frost, Irridescent Breezy Blue, Cloudy Slorm Sundown Pink. Sea greens in Frosly Aqua, South Sea Green, Nile Green, Marina Bluo and Sunny Sand Frost. Coimelici, Main Floor Y N Figures seem to back up Lewis Mrs. Freda Elmes, Max Factor Beauty Consultant will be af ihe cosmelic counter, main floor, all next week, Monday through Sar- urday, to assist you wifh your prob- lems. Be sure to see her. By JAMES NELSON OTTAWA (CP) Twenty- five per cent of all corporation profits in 1970 went into the fed- eral treasury but some com- panies paid as- little as seven cents on the profit dollar and many firms escaped any corpo- rate taxes, latest figures show. This is from the recently-re- leased Statistics Canada data covering 1970, latest year for which the corporation tax fig- ures are available. They may inject new fuel into the argument raised by New Democrat Leader David Lewis over whether some large corpo- rations carry their fair share of the national'tax burden. The figures show some shifts occurred in the taxes on corpo- rations between 1963 and 1970. Generally, the firms that en- joyed the lowest effective rates in 1939, in the mining, petro- create more jobs, pointing to the Hugo increase in the work force. Mr. Lewis says the sys- tem obviously hasn't worked well smco tlie unemployment rate still is more than six per cent. The Statistics Canada report deals only with direct federal taxes levied on corporate prof- its. Corporations, of course, also pay local and provincial land, business and hidden taxes. A share of what they re- mit to Ottawa is turned over to the provinces. Provincial scales of tax vary. In 1970, because of economic conditions, corporation profits generally were lower than >n 1969. In an attempt to stem in- flation, the now-defunct prices and incomes commission was policing an agreement by busi- nessmen to keep price in- creases below the level of cost leum and natural gas busi- nesses, paid somewhat more in 1970. The high-rate beverage manufacturers, which include distillers and brewers, paid a lower effective rate. Disagrees Mr. who has been working with Ihe 19G9 figures, has been saying thai federal tax he describes as the creation of past Liberal and Conservative governments- permits too many big corpo- rations to gain too much tax re- lief. Ele calls the system a corpo- rate rip-off, that's current-day slang for any kind of unethical profit. He has specified certain firms as corporate welfare bums. Some corporations named as such by Mr. Lewis have given strongly-worded denials. J. V. Clyne, chairman of MacMillan Bloedel Ltd., a forest products giant, has accused Mr. Lewis of talking "straight damn non- sense." Prime Minister Trudeau, Fi- nance Minister) John Turner and other members of the cabi- net have defended the tax sys- tem as designed to encourage companies to reinvest their earnings in plant expansion to increases, thus squeezing profit margins. The firms filing fed- eral returns in 1970 showed profits totalling billion. That was down nearly B.7 per cent from profits totalling more ncome tax on a citizen who earned only a year above basic exemptions. At that level of taxable Income, in 1970, fed- eral income tax starts at the rale of 11.72 per cent. There were 731 corporations filing tax returns for 1970 in the field of oil and gas wells, oper- ating exclusively in that field. Tlus was up from 662 in 1969. They pre-tax profits totalling million in 1970, down significantly from million in 1969. However, there Is a long, tan- path between tho profit 'igures reported by corpo- rations In tlreir annual state ments to shareholders and tho figures they are allowed by the Income Tar 's report to the revenue department for tax purposes. The net effect is to reduce the tax liability and this is what Mr. Lewis calls the rip- lieir profits, and 20.89 per cent n the profits of the industry as I whole. In 1969, the finance irms liable for taxes had prof- ts of billion reduced to jllllon. They paid million n federal effective tax rate of 21.94 per cent. It was 19.99 per cent for the whole industry. Almost 41.4 per cent of a11 Icde.-al direct tax collections from corporations in 1970 came from manufacturers, down from 46.8 per cent in I960. Up a bit For instance, a company might normally expect a new machine to have a useful life ot 0 years and so charge only ne-tenlh of its cost each year as depreciation. Write-off But, as an encouragement for hat company to expand, tho ;overnmetit will permil it to write off the new machina against taxable income in per- liaps two years. If it expands its scientific facilities, it can claim more against its taxable income ilian the actual cost the oxapnsion. Allowances On the one hand, Ihe law dis- allows for tax purposes some campaign than billion reported by firms in 1969. Because of allowances made by the Income Tax Act, of the firms in 1970 re- ported they had no taxable in- come that year, compared wilh of returns in 1969. The remaining taxable firms paid billion in federal in- come taxes in 1970, or 25.48 per cent of all profits. Corporate in- come lax amounted to nearly billion in 1969, or par cent of all profits. Relief Ths firms which had no corporate tax liability in 1970 actually had combined profits totalling million. Some had sizeable profits but losses by other lirrns dragged the total down. The tax rules gave tax relief to the profit- makers. Many adjustments are per- mitted between the profit fig- ures that corporations report to their shareholders and the tax- able income they report to the govenment. Some of these tax laws have been modified in teh sweeping expenditures that corporations make in figuring their ptorits under normal accounling prac- tices. On the other, the law per- mits the corporations to deduct other cha'.-ges more generously than any accountant would nor- mally regard as proper. In case of the oil and gas gas law wel's, for iastance, Ihe tax law permitted the companies in 1970 to add back into their net profits about million. It then gave the corporations the right to deduct another million as special incentives to expand operations. The net effect of this was to reduce the million profit for 1970 for all the 731 com- panies in the industry to 1.8 million less than zero taxable income. In 1969, the mil- lion profit of 662 companies was reduced to a taxable income figure of million. Even though the industry op- Manufacturers of petroleum and coal products paid an ef fective tax rote of 12.56 pe cent on profits of million compared with 10.38 per cent in 1969 on profit of million. Beverage manufacturers, in eluding liquor, beer and sof drinks, paid 34.41 per cent i taxes of profits compared with 37.62 per cent o million profits in 19S9. In addition, of course, the li- quor companies paid excise taxes on imports and domestic production. Food manufacturers in 1970 paid 40.83 per cent of profits to- talling million, compared with 31.35 per cent of 1969 prof- its totalling million. Statistics Canada does not re- port figures for any individual [inn, finder law, tlus tax re- turn data is confidential. Data from individ- ual firms, which is not made public in annual reports, also is confidential under the Statistics Act. However, the bureau cites some of the ways in which cor- porate profit figures are sharply reduced for corporate income tax puposcs. Totals differ "Taxable income, in many cases, differs substantially from book the bureau says. "In large part, this difference arises out of the fact that the erated at a loss, for tax pur- poses, some companies had to pay taxes. This amounted to million, down from million in 1969. The position of the companies mining metals other than gold is similar. In 1970, there were revisin of the Income Tax Act 140 companies which reported passed by Parliament last year combined profits of mil- Income Tax Act provides that dividends received from Cana- dian corporations, paid out of after-tax income, are not sub- ject to double taxation as pari of the income of teh dividend receiving corporations. "Other differences have ari sen because taxation legislation has been used to an increasing IAUNDEI i'HERE! ARKS1DE COIN-OP LAUNDRY DRY CLEAN 2634 SOUTH PARKSIDE DRIVE 1? INGL1S WASHERS PLUS 25-LB. WASHER QUALITY DRY Buy Line 328-8811. Shop Eaton's Monday 9 a.m. to p.m. Use Your Come True Card Reduce the price of your car wash- when you fill your tank with gasoline at a Pacific 66 Car Wash! SUPERSOniC Car Wash 1819 -3 Avenue S. It's easy and convenienl to drive a clean cari We honor all credit cards approved by dealer before purchase including CHARGEX. We Care about you and your car L That's a promise and taking effect last Jrn. 1. But an underlying principle down from 174 companies e reporting profits of mil- over the years as an in- WlCHmilW trument of government pol- ?i D V TLJC I n encouraging industry to expand in slow-growth parts of le country and in. some fields such as resource development and scientific research. The basic tax rates on corporations in 1970 were unchanged rom 1969. They were 21.54 per cent on the first of in 1969. But after making i all the adjustments allowed by :ax law, 1970 profit's were reduced to a taxable income of i million, compared with million in 1969. In tliis process, many com- r pcrahps the I find their tax liability BY Tnt LUAIs To stimulate Industrial in slow-growth areas or n such lines of work as scien- PHONE ific research, the government permits corporations to claim 007-0011 lore than standard accounting UO I 1 ates of depreciation on new ilnnt and equipment. income, plus 51.41 per cent on everything in excess of zero. Those which were taxable in 1970 paid million or 10.22 per cent of MA1ER Applied to manufacturing industry generally, these in the industry. The 1969 iigures' were ?18.4 million HOUSEHOLD resulted in ?2.85 billion or 31.93 ler cent of all declared profits >cing paid in federal corporate ncome tax. This was up ae 7.58 per cent of reported profits. Sale is another field 29.92 per cent in 1969. For the highly-taxed bever-fie manufacturers the tax law permits beneficial adjustments to HURLBURT WAREHOUSE ,ve rate in 1970 was 34.41 per cent, down from 37.62 per cent in figures taxes can >e applied. Statistics Canada lump in that category the banks, trust and -2nd AVE. SOUTH MONDAY, OCT. 2 P.M. Bates brokerage CASH NO RESERVE But for industries given special incentives, the effective rates were higher. On oil estate firms and credit and loan companies. There were such received Instructions from Mr and Moier will sell .nlire household furniture and effects. ;as wells, it was 6.71 per cent n 1970 compared with 4.71 per cent in 1969. For metal mining, other than gold, it was 10.22 pre-tax profits of billion in 1970, compared with reporting billion in 1969. Of these, firms 1963 Frisidaire Air Flow e eclric range, Slide-In 4 burner Ircy, A-l CoWspol 12 cu. ft. (ridge, good condition; 1965 Friaidaire dishwasher, 1 five piece kitchen su te (chrome table and 4 Chroma cannister set, Set cent compared with million in Various small eleclrica appliances. in escaped taxes ROOM A 25-per-cent lax rate for Ihe law brought their Mahogany 7 piece Knechlel dininci suilo exlra wralions compares wilh down to zero or less. 4 padded chairs, hutch and 1 pair dropes lersonal income tax levied (here wire1 24" Various silver pieces. m individual who has a profits totalling ROOM income of about a which escaped two piece chesterfield suite; 9 x 15' axminsler gold pat- after allowble deductions remaining Tug (2 years Easy choir and stool; 3 step tables single or married status in 1970 had their and dark 1 coffee table (light 2 floor ior dependent of billion (Torsh-Air and pole; 1 Emerson 19" B and TV; The sevcn-per-cent rate billion and paid RCA 19" B ond W TVs; 1 Electrohomn radio-record player; by the oil and gas well in federal taxes an {needs 2 pair lined drapes (each pane panics is less lhan the rate of 23.53 per cent Ash stands. BEDROOMS five piece light wood bedroom suite; 1 three piece dark bedroom suite, eight foot cupboard (3-sMding doors; Canadian hallenge Ji rmed ft dventure Forces five drawer chest of drawers. White vanity chair; Vanity stool; Desk; Pair fibreglass dropes (each 50" Bedding ond linen; Bedspreads; Pair matching lamps. UTILITY ROOM and SHOP Singer sewing machrne; Frigidaire washer Viking electric dryer; 10' wood tablo 6 chrome chairs; Double Jink; Sanyo vacuum; Connor pofisher; Corpel sweeper; Scale; Craftsman wood lalhe <1 h.p. B D electric drill; Jig saw; Bench vise; Cap loin chair; Air A Military Career Counsellor will be ol the lawn Tounaes; 2 lawn chairs; 2 step ladders; Jubilee power Town House Motel, Lethbridge, from noon B S mo for; Bar-B-Q; Trailer hikh; Stevens 12 gauge sholgun; Bird bolhj Various oarden tools and rugs; Quantity p.m., 4 and 5 October 72, to discuss career lumber, windows, pictures and many many other numerous portunities in. Canada's Armed Forces and to too numerous to mention. applications for NOTE: above mentioned furniture Is all In very good If you are interested, are of good character, are and should fit n onyone's home. Canadian citizen, married or single, in good Sunday, Oct. lit to p.m. and" all and between the ages of 17 ond 24, enquire Monday till tale time. "Come An Evening Wilh Us" vacancies aval CONDUCTED BY If you ore considering University thii fall AUCTION SERVICE LTD. about our subsidized educational programs. You 338-4705 19JO 2nd Ave. S., Lethbridgo paid while getting a degree at no expense to and are assured of a good job when you ERDMANN TED NEWBY 41 lie- 158 ;