HomeMy WebLinkAboutThe Wingham Advance-Times, 1984-05-23, Page 19a
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HANOVER
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AM Fri. evenings
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Tax treats
By W. Roger Worth
Forcing the huge and
powerful political -bureau-
cratic apparatus to change
policy direction, even min-
utely, is a major feat.
For such :policy turn-
arounds to occur in a rela-
tively short time is unusual,
to say the least.
Yet that's precisely what
has happened with two
issues that particularly con-
cern small business, as well
as the general public. The
changes do not fully resolve
outstanding problems, buJ t
they are moves in the righ t
direction.
0 0 0
The first good news fc lr
smaller firms came froi n
Marc Lalonde. In his sprir ig
Budget, the federal Finani :te
Minister agreed that indi' 4 -
duals and businesses st ic-
cessfully appealing thi air
cases through the tax cou its
were being treated unfaii:ly.
The problem: even if 1.ax-
payers defeated Revenue
Canada in court, they ge ner-
ally lost money because the
cost of lawyers and acct lunt-
ants to prepare the case
could total $5,000 or mor. e. So
a taxpayer appealin g a
$1,000 reassessment was
forced to pay up, even if he
or she believed RevCan was
wrong. To do other' wise
would cost thousands off ex-
tra dollars.
In his budget, Lalonde in-
troduced a measure that
would allow payment: of.
$1,000 for costs to' such tax-
payers. Since most of those
appealing their case oper—
ated smaller firms, the
64,000 -member C.anad ian
. Federation of Independent
Business made representa-
tions to the Finance Minis ter
that included, among others,
recommendations for
changes in the tax rules; .8 ,
plea for. full , payment o: f
costs.
To his credit, Lalonde did a
quick turnaround. He rf a-
cently announced that tl: ie
courts will be able to awai d
full ' compensation for leg al
and accounting costs in sum :h
instances.
That's a major move in t' he
right direction, as people v 'ill
have a fighting chance wh en
going up against Rever iue
Canada.
0-0-0
The second situation in-
volves Manitoba. A coupl, e of
years ago, the provin tial
government passed legi $la -
tion forcing employers ti o
,pay anew tax that amour rte• ,d
to 1.5 per cent of payrol 1.
A smaller firm emplo: yir rg.
four people, 'with aver Tal ge
salaries of $12,000 per :ye ar
and a total payroll of $50 ,01 00,
for example, paid an e. iii tra
$750 annually.
That might not seem lily . e a
lot of money. But to smal ler
companies, just break ing •
even or_,actually los ing
money, it • was onerous in-
deed.
Partially as a result of the
tax, the smaller firms . that'
had been supplying virb sally
all of Manitoba's new jobs
were, understandably i reluc-
tant to hire more woi ;kers.
Again the. Federatic m en-
tered the fray, pressir ng the
province publicly and during
meetings with poli) j.cians
and bureaucrats to eli eminate
'the tax, at least for smaller
firms.
• - Recently Ma initobi a moved
in that direction. Th e tax has
been eliminatied for • the first
$50,000 of an e mplo: yer's pay-
roll.
The systen i mr Ay not be
perfect, but thes e two ex-
amples Indic, ate I .hat with a
hard enough pust r, the politi-
cal-bureaucn3tic monster -
can indeed be me wed.
Roosevelt bir 'thr late
Eleanor Rc nos ,evelt, wife of
Franklin D. R oosevelt and
first lady o f the United
States, was ba rn on Oct. 11,
1884.
DRIVING IN RAIN
' A heavy rain . means poten-
tial danger for a driver. •The
water lifts ac ,cumulated oil
from the. pi avement and
causes intern* iittent "slicks"
until the oil hi as been washed
away. The Ontario Safety
League advi: res motorists in
any rain to cut your speed,
turn your he :adlights on low
beam, allow more room for
stopping, i and watch for
head-dowr i pedestrians.
Remember that rainstorm
visibility is very poor
through yot air windshield and
almost ter o on Bides and to
the rear.