CASTLEGAR NEWS, Thursday, January 20, 1972

“VALUATION DAY CAUSES CONCERN. WHAT DOES IT MEAN TO YOU! ~

FROM MONTREAL TRUST NEWSLETTER

. Although “Valuation Day” (or “V Day” as it has come to be
called) will not be remembered in history as long as D-Day or
V.E.-Day or VJ.-Day, for the moment it is causing some con-

among C: : Despite all the

, analyses and press articles about the capital gains tax and

+-Valuation Day, many Canadians will not be affected. In fact,
for the of people, no i diate action nced or should

: be taken. However, it is in everyone's interest to understand :

what Valuation Day is and what they should do dbout it.

Valuation Day Itself

The principle of Valuation Day is simple: since Canada now.

propases to introduce capital gains taxation into its tax sys-
tem, some kind of special provision is necessary to avoid taxing
gains which took place before the introduction of the capital
gains. tax. To do otherwise, would be to engage in retroactive
taxation. There must, therefore, be a date where the value of
property owned by a taxpayer is established so as to permit
measurement of the gains from that day forward.

On the assumption that the fairest method would be to an-
nounce Valuation Day after the day has passed, the Govern-
ment has provided for two valuation dates; one in relation to
publicly traded securities and the other in relation to any
other assets. These dates must be after June 18, 1971 and may
be before or after the d tax law,
Thus the much-anticipated “Valuation Day” should probably
be referred to as “Valuation Days”, although nothing requires
that the two valuation days be on different dates.

It may be that Valuation Day has already passed. Most ex-
perts, however, feel that Valuation Day will be on or very
close to the day on which the new system commences. Despite
the fact that Valuation Day may already have passed, gains
realized as a result of transactions prior to December 31st,
1971, will not be taxable.

What Will Be Taxable

In general, the new Capital Gains Tax will be calculated on
one-half of net capital gains realized (and sometimes assumed
to be realized as will be seen below) in a taxation, year. In de-
termining taxable income, capital losses will be allowed as a
deduction.

Capital Gains Tax is normally payable only when a | gain is
realized, In certain » the tax

ers will have the alternative of calculating capital gains and
capital losses, on assets, owned on December 31, 1971, as if
original cost and value on Valuation Day were the same. This
alternative must be formally made for all assets prior to filing

* the first income tax return after the 1971 tax year for a year in

which there was a disposal of any asset subject to capital gains
tax, If no assets, which would be subject to capital gains tax
were sold until 1976 for example, then this option need not be
made until the return is made for that year.

The significance of this option is best seen by means of an
example, Suppose a taxpayer owns a portfolio containing two
both stocks in ies A and B respec-

tively.

Company A
(100 shares)

Company B
(50 shares)

Cost
Valuation Day
Price when sold, after V Day

Tax Free Zone Basis
Gains (Losses) $400
(84 gain x ($5 loss X
100 shares) 50 shares)
Net Gain—$150

$(250)

‘est Kootenay Health Forum
"Drosarlag for Gefting Older
Can be Done with Much Dignity

‘By J. Ueda Public Health

rse
Aging is a fact of life,
We begin this process from
born. *
lepend-
ing on He wage ctlons’ a
Ing expecta
someumes with dread an
even feat. ‘When we are
young, want to fae
“te yen we are a ult,
bi ores ysl a
teau where physical a,
ceases - alth ula-

be old. So
‘tural procedure and society
condones our
for we live in a world ‘witch
emphasizes youth, producti-
vily, an _ action.
what will happen

when. cn discover that the

wrinkles on our’ faces be-
‘come Prominent, that trim
difficult to

Valuation Day Value Basis
Gains (Losses) $400
1 ($4 gain X | ($14 loss X
100 shares) 50 shares)
Net Gain—0
Net Loss—$300

$(700)

In this example, it would be to the taxpayer's advanta,
choose’ the option of using the Valuation Day value bitsis.
However, it should be remembered that the option does not
apply to a separate class of assets, such as an investment port-
folio, but must be made in respect to all assets, Therefore, the
taxpayer would have to consider what had happened since
Valuation Day and what was likely to happen in the future to
the value of all other assets, including listed personal property

may treat the taxpayer as if a capital gain. had ‘been realized.
For example, when a person dies, leaves the country or makes
a-gift, the capital gains tax will be applied as if the property
has been sold, No tax, however, would be payable on property
gifted or passing on death toa haan or wife. _.

Capital Gains will sale dl
to the higher of cost or Valuation we value and losses bya
comparison to the lower of cost or Valuation Day value. This
creates what is known as the “tax free zone”. This means that
property can increase in value after Valuation Day, and yet be
disposed of without capital gains tax, provided the actual cost

was greater than the proceeds of the sale. For example, an as-~

set with a value of $7,500.00 on Valuation Day, with an origi-"
nal cost of $10,000.00, and sold for less than $10,000.00 would
not be subject to Capital Gains Tax.
Valuation Options
If the above tax free zone would not be advantageous, taxpay-
: 10c eo MEAN JOBS: -

CUP OF COFFEE

“The Best In Town”
Centre Rest

.C. Forest ‘Service re dir-
ectly employed in the p fore

tish C

We Have a Complete...

HEALTH FOOD
CENTRE

CUT-RATE

KINNAIRD

CLINICALLY TESTED AND GUARANTEED
|G DISCOVERY FOR HAIR AND
| .SCALP. (Aid to improve condition of scalp.) ACT NOW!

MEN - WOMEN
“Save Your Hair”

GET THE Fi

‘6 hy Jour conden, “hs “hope-
‘This internationally - famous ew

fr ankiy. About 5% of those he
expert urges that you do not examines are ho rclecn Other
wise he'll tell you what's

about hair loss, dandruff, itch- to put your scalp ia
eS! ing or other scalp disorders, S A healthy

HATE AND BCAL®

DANGER SIGNS

@ Dandruff Hair

@ Excess Hair Fall 3 Has ap OE
Hair and Scalp Specialist will be holding free hair and
scalp clinic at the Hi Arrow Arms on Sate Jan. 22 only’
between the hours of 2 p.m. and 8 p.m.

. All. examinations are given in private, there is no
obligation, No appointment needed. Ask ihe desk clerk
for Mr. Brown's suite number.’

National Hal Hale: and and Scalp Institute’ of Canada |
P. Vancouver, 8.c.

imately 178,000 iss
“the

below) before taking this option.

maintain, that our.jobs are
taken by younger people
and. that retirement is em-

to dread

ents, cl 4
‘proparation for. ‘old. ae
is not 180 very different
from aring for other
fe such as mar-

ed

phenomenon,
now a eer ite

« Wicket-Strauss

{To be Continued Next Week)
Control of Sudden Stops
Can Prevent Car Mishaps

Hoy take action about a tenth of
take you a second later than men in

mobile their own age group.
@ Concentration. A

’ driver can respond to dang-
er. faster if he oF she pays

close attention to possible Hy
dangers ahead of vehi-

de, such as street intersec-»
tions, :

: “@ 3g
the speed, the longer the
stopping distance and the:
shorter the reaction time
required of the driver.

says for speeiis

er and move his or

sa: THe" greater S2

ean affect

her Bae from the accelera- BCAA

ce

the distance covered by the-”

car before it actually stops.

Although the average
reaction time for a driver
is about three-quarters of a
second, sever conditions

° Fatizue. A driver is
tess alert to potential haz-

@ Alcohol. Impaired
attention is one of the many
adverse effects of drinking
peters driving,

@ Age. People under
thirty react faster.

@ Sex. Women tend to

> PETTITT PHOTOS

_SOLOHd -LEWI3d

_SAWYER’S .
500 Watt
Universal

Slide
Projector
$40.00

coy Silbad

TTITT_PHOTOS

paena cee abBREe

under twenty-five ; miles

hour the reaction time and
distance are rough-
but these distances

iner proportionately

with higher speeds.

Braking distance: dc
pends on the speed at which
the vehicle is travelling and
the drag force slowing the
car down. This force is cre-

brek by friction between

rake linings and. drums.

Drag ‘force. . developed
by the brakes is caused by
the condition of brake
drums and linings; presence

oil ior other

and the degree of pressure
applied to whe brake pedal.
Assuming that the brake
es are SIrOne enough to
stop the wheels, their suc-
cessful use relies also on
the nature and condition of
the road surface, Take into
consideration the type of
surtice —_ Gaphall, oot soucrele,
vel or
ce temperatures! and ‘am:
ount of rain, snow: or ice;
foreign bodies such as
nails, glass or even
trashy and traction: devices.

:-like chains and snow tires

in use at the time.

W “As M Lad
_ New Years Eve
United Church

Parker |
unite Mae A. Wickett, for-

merly of Castle; and Al-
bert Strauss,- rly of

Bue was given in mar-

ant
ett of Rosetown and Gregg

Wickett of Castle; were
ushers, ae

Soloist was Mrs. Harry
Smith, the “former Velma
May of Trail. A dinner fol-

: {lowed in the Tropic Isle. .
gratulatory - messag-

“es were p Fecelved from many
points in Canada and U.S.
Afterwards, the families

gathered at the couple's re-

sidence, Grosvenor Place

Apt. 218, 10463, 150 St. Si

rey, to ‘pring ‘in in the New
Year.

: ‘Skaters Concert
. Well Received

A large crowd attended
Concert presented

concert’ _ b;
very generously to the silv-
er collection. |

gnoP WHERE ARE

"MILK, Alhpa 2%

6 for $1.00

CAKE MIXES, Dun. Hines, 2 for 98¢

BOG FOOD, Romper 15 oz. 8 for 89c

MARGARINE, Parkay ....

3 Ibs. 99c

PEANUT BUTTER, 48 oz.

Free Ice Scrapers Available

ALL FISHING TACKLE FOR THE FISHERMAN
GULF GAS AND OlL — PROPANE TANKS FILLED

Johnny's Grocery & Gas Sales:

LIMITED — ON ROBSON SIDE OF FERRY.
OPEN. 7:00 A.M. TO 9:00 P.M. 7 DAYS A WEEK

tion the
contributing

ghalne on our fiftieth birth-

taining interests
and aetivities is
important, as jobs are re-
ulehed — the attitude

of “there's nothing to do’

can be overcome b; willing:
‘ness to

er. Changes occur in our
senses — eyesight becomes
dim and hearing becomes
Jess acute. Conditions in-
volving body organs become

more troublesome and re-
ines medical attention.
ances. tend to be prolong.
cause of the body's

Y mnird, we cannot: ig-
nore the economic aspect of
preparation for ol e,

parucularly
standard of living is to be
maintained. We can expect
a fixed income, but we can-
not foresee other changes
— alterations in the nat-
jon’s economy and various
unexpected expenses which
seem @ when we are
dena equipped to deal with

» All of the above con-
notes a certain amount of
independence on the part of

no longer able to cope with
emotional or physical diffi-
culties and. overcome them,
it is time to accept help.
The manner in which fe
sistance is accepted will, to
influence the

very people we need around

Few oe a consider old
— we only

Bre, it eat hen the
wh n
i forces us to, do *

ble f
With the Se clopients R
aH medical science, we have ©

been given Jonger life ex-
ectancy than our grand-
fathers.”
Referring to the recent
ealth Forum article ‘on
“The. Value of “Pre-Natal

Care,” the maternal and in-*
rates.

fant’ mortalit . quoted
were for itish Columbia
pad should have read as

Maternal death rate per
1,000 Jives births; 1921, 5.0;
1968, 0.3. (Not 3 as. previ-
ously rint a.

rate per

death
1,000 live births; 1921, 58.0;
168, 20.0.”

rticularly .

A RAINBOW. AVENTGE FILM

Produced by CHUGK KEE!
(© 1071 AMERICAN NATIONAL ENTERPY

SPECIAL SHOWING
Friday, January 21 Only

200 an
Adults $1.50
12 & Under 75¢

REVLON

LARGE SIZE

SALE

Limited Time Only -.

MOGN DROPS. MOISTURIZER CLEANSER |

14 oz, $4.00

SAVE $2.50

MOON DROPS MOISTURE BALM

MOON DROPS SKIN CONDITIONER & CLEANSER
SAVE_ $3.20 .

$4.50_ *

MOON PROFS UNDER ‘MAKE-UP MOISTURE FM

Wish

a ree
“eso”

SAVE $4.39

se

“SAVE $4.39

AND MANY MORE

;AT THE PLAZA

AND TREASURE ROOM

Balance. 20%

NO REFUNDS

souEneNs Alas WEAR

TWO DAY SALE

THIS FRIDAY AND SATURDAY ONLY :
coca 21 and 22

_ SWEATERS } PRICE TABLE

s - WASH 'N WEAR PANTS.
+ Price Rack - Balance 10% Of

LONG-SLEEVED SPORT SHIRTS.
4 Price Rack - Balance 20% Off

© DRESS SHOES values up to $30
SELLING FOR 10°
ALL OTHER STOCK 20% OFF

" SUITS & SPORT JACKETS NOT ON SALE

January 20th, 2st, 2nd

In Your Friendly Neighborhood Safeway Store

WE RESERVE THE RIGHT TO LIMIT QUANTITIES

Empress Brand

~ Marmalade

Seville Orange or G.L.O,

Safeway Brand

Fresh Coffee
89

“ll Purpose Grind. ~
Contains Colombian Coffees.
VIB. bag og

Town House Brand

Tomato Soup

$1.00

Or Vegetable Soup. .
Serve with Busy Baker
Crackers, 10 fl. oz. tin

Margarine

Pure Vegetable,
Great on Toast.

H 3 1b, Block

Scotch Treat Brand
Green Peas

Frozen.
Tender Sweet Peas, 5
2 Ib. poly bag ...

89:

Lynn Valley

Cut Green Beans
6. | 00 ae 20- ~ $1. 49

Wax Beans or
Cream Corn. -

14 ox. tin

Robin Hocd
Flour

baking needs. Aap

Scotch Treat Brand
French Fries

Frozen. Choice Quality.
Serve with Steak.

$1.00

Taste Tells
Apple Juice

A favorite juice anytime,
From Concentrate.

David. Brand
Sweet Biscuits

_ General Mills
Corn Flakes

Alberta Grown Drybelt

Baking Potatoes

Canada No. 2
Sound & Clean.
Serve with Luceme *
Sour Cream ..

Red or Golden,
Canada Fancy, Grade.

Make your own
: Cold: remedy.
" Size 165's

"Pork clog Ro st

Whole or Shank Portion.

Fresh. Cut from Top Quality ,
Government Inspected Grain-Fed
Porkers. Serve with applesauce

Safeway Regular Quality

Ground Beef

. Standing Rib Roast
Ground Fresh’ King King of Roasts. |
Canada Googe

fre flloana bain rn Fow! cin

lll Piece Side Bacon «..- su.

||| Sliced Side Bacon wees: » ru

~ Canada tn No. 1 Grade.
_ Tey with s Cheese Sauce. ..

Broccoli

29

Manor House Frozen

Whole Fryers:

Cont’a ‘and Bake f.
Delicious Flaver., 2 4 5
Gov't. Inspected ....... eee | i

Chicken Breasts cin... «.

Pink Salnion

Whole F: rozen. Head
On. 4 - 6 lbs.
Stuff and Bake

|” Pel: Food

14 02. tin

anifary Napkins
Te

$1.89:

8 for $1.00 .

CANADA SAFEWAY LIMITED