sy:
u__ Castlegar News June 23. 1985

BUSINESS

$2 BILLION BOONDOGGLE

Tax credit misused

OTTAWA (CP) — Rev-
enue Canada’s investigative
bird dogs are finding tough
tracking as they trace the
collapse of a costly and dub-
ious federal program, the
now-lapsed scientific resear-
ch tax credit.

It was a godsend to those
who figured out how to use
its provisions to soak the
treasury for millons of dollars
worth of credits against work
they never got around to

doing.
BOUGHT HOTELS
Instead of ping mir-

Cc by the p
Liberal government in hopes
of boosting the country’s re-
search effort, the tax credit
became an expensive boon-
doggle. And now, the tax
man is having, trouble col-

acle drugs or super-strength
concrete, some of the credits
were allegedly used to buy
hotels in the Caribbean and
purchase fleets of fancy
cars. Come companies built
office ildi and called

lecting from

The program is $2 billion
over budget because the Fi-
nance Department was wild-
ly innacurate in estimating
its popularity.

Forecasting, a top official
ruefully admitted, “is a very,
very difficult game.”

The credit attracted tax
scammers like flies in 1984
before it was cut by Finance
Minister Michael Wilson in
the May 23 budget this year.

them “research parks.”
Others, officials suspect,
flipped the money through
the system and disappeared
into the night. Revenue Can
ada admits that some have
already left the country.
The RCMP is investigating
some cases, but Revenue
Minister Perrin Beatty re-
fused to say in a recent in-
terview how widespread the
abuse was. Beatty promises

to pi fraud cases to

RENT-A-BOBCAT

the full extent of the law.

But that job is proving

difficult.

ceive

$55 to be repaid on demand.

from the federal
governmient as a tax credit.
After a short period, the in-
vestor would be repaid his
loan.

The repayment of $55, plus
receipt of the $50 credit when
the tax return was pro
cessed, provided the investor
with a short-term, no-risk re-
turn of $5 on the use of the
investor's money. The R and
D company, meanwhile, had
netted $45 from the trans-
action, which was supposed
to be used for research.

But many of the compan-
ies, described by a tax official
as “your starry-eyed garage
inventors,” could not come up
with the secondary financing
to pay for its share of the re-
search.

Other companies folded
before they could finish the
research. Coupled with the

The\jnvestor would then re-

outright cases of fraud, the
government lost millions and
has little or no security to call
in.

One example was given of
a company which couldn't do
the research, and ended up
owing $32 million to the tax
man. But the company is not
worth the value of its re-
search credits. Revenue
Canada expects to collect no
more than $6 million.

“There will be -more like
that,” says Robert Beith, dir-
ector of the department's
corporate rulings branch.

Beith says the department
will not be sure how many
cases of bad debt it has until
all the companies have filed
returns. In most cases, the
company directors are pro-
tected from Revenue Canada
collectors, as long as they ex-
ercised “due care and dil-
igence” in using the program.

Paper can’t be copied

BOISE, IDAHO (AP) — Two Canadian inventors
have created a product for the bureaucrat who worries
about snoops in his office — paper that cannot be
photocopied.

Boise Cascade Corp., which will help market the
produet, says it will begin selling the unique, spyproof
paper to the U.S. government in September.

Inventors Norman Gardner, a Toronto advertiser,

Michael Voticky, a Montreal furrier, retain the right
to sell the product to commercial customers.

“We don't know how much we can sell to the
government,” said Vicky Diede, project manager for
Boise Cascade's security paper division in Portland, Ore.
“I can tell you that we've had a tremendous amount of
interest because of the (John Walker) spy case.”

Walker, arrested last month, is accused of being the
head of a spy family that sold’ classified U.S. Navy
information to the Soviet Union.

In 1980, Gardner set out to find a special paper dye
because, as owner of a company that handled public

for fi ial i “I realized that a
secretary could wipe us out while I was away for lunch.”

After experiments with dozens of ordinary sub
stances such as nail-polish remover and coffee grounds,
an accidental spill led him to a burgundy-colored dye that,
when impregnated into paper, blinds copy machines and
causes them to turn out blackened paper.

He and Voticky patented their find and formed
Nocopi Inc., a company based in Hamilton, to distribute
the expensive paper, which costs between five and 10
cents a sheet.

The only drawback is that the burgundy paper is
hard to read. To get around that, Gardner developed a
hot pink paper that is more legible but still should foil
duplicators.

Diede said Boise Cascade probably will produce the
paper that it and Nocopi sell, but the company returned
the commercial rights to Gardner and Voticky because
the big paper-products company is not geared to selling
small amounts of anything.

“People will buy this product by the ream,” she said.
We sell by the truckload and the tonne.”

A test later this month will show whether Boise
Cascade equipment can make the paper. If the test is
positive, the paper probably will be produced at the
company’s plant in Rumford, Me.

Boise Cascade's right to sell to the federal
government expires in February 1986. It will renegotiate
with Nocopi if the demand meets the company's
expectations.

Diede could not say how much copyproof paper Boise
Cascade believes it can sell. However, she said Gardner
hopes to sell 100 tonnes in the first year.

Janice Wright, a former Boise Cascade employee
who was product manager for the company’s security
paper division, said a weekly trade newsletter estimates
that demand for white copyproof paper could run as high
as 20,000 tonnes a year.

“But since this product has a very dark red or
burgundy color, we have to scale our estimations back
accordingly.”

Weekly Stocks

The problem is a built-in

loophole called the “quick
flip” which enabled compan- TORONTO (CP) — The

ies to buy and sell the tax
credits, billing the cost to

government.
RECEIVES CREDIT

In the typical quick flip, an
investor would lend a re-

search Pp $100 with

FLYER CORRECTION
PLEASE NOTE THAT IN TODAY'S
SAFEWAY FLYER (JUNE 23, 1985)

Olympic Side Bacon, smoked, sliced 500 gram
package is advertised at $2.79. This should read

this may

Our apolog for any

couse.

Toronto Stock Exchange fin-
ished a lacklustre week on an
upward note Friday, climb-
ing on moderate trading.
The TSE 300 composite
index of major issues climbed
9.69 Friday to 2701.42 as 10.7
million shares changed
hands. Advancing issues out-
numbered declines 356 to 309
and 322 were unchanged.
On Wall Street, trading hit
a feverish pace as the Dow

Jones industrial average
soared to its second-highest
close on record and the over-
all market scored a broad ad-

vance.

The Dow Jones average of

1,324.48. That gave the
measure a gain for the week
of 23.52 points, and left it
only 2.80 points below its
record high close of 1,327.28
reached June 6.

It also was the average's
best daily gain since Jan. 21,
when it climbed 34.01 points.

Most of Friday's gain came
in the final 30 minutes of
trading and was heavily re-
lated to the expiration of
stock-index futures and op-
tions contracts, analysts said.

Over the week in Toronto,

the 300 composite index fail-
ed to show little sub:

e
© Engine Repairs
e

MARUISHI 15-speed mountain
bike, 19° frame. used.
Ph. 365-3034.

EXERCISE BIKE

Tax battle resumes

OTTAWA (CP) — The battle over tax reform in the But Bulloch said reform would not come easy. “There
United States is about to open a second front in Canada. are certainly going to be winners and losers,” he said in an

The impetus comes from a discussion paper released interview.
with the May 23 budget proposing reforms that would Bulloch said most members of his small business group
reduce corporate tax incentives for business while lowering will be among the winners because small business is
overall corporate tax rates. generally not capitalintensive. They will be affected,

President Ronald Reagan unveiled similar measures in however, by the elimination of the inventory allowance.
the United States and the result was an outcry from the Thomas D' Aquino, whose Business Council on National
smokestack industries — steel, automobiles, machine tool Issues counts among its members such smokestack
companies — who will see their tax bill rise as incentives are heavyweights as Stelco Ine., Dofasco Inc., Ford Motor Co. of

removed. Canada and Chrysler Canada Ltd., said the principle behind
The two proposals involve reducing fast writeoffs, the reforms is generally endorsed by the business
otherwise known as accelerated capital cost allowances, for community.

hinery ai the tax credit. The
Canadian version retains this credit for scientific research
expenditures only.

In addition, the inventory allowance, a form of inflation
protection, would be eliminated in Canada, with possible

90 industrials shot up 24.75 to falling 0.41 per cent. The loss

over the week amounted to

Rubber Stamps

Made to Order
CASTLEGAR NEWS
197 Columbie Ave.
Phone 365-7266

$882 million, bringing the
overall value of TSE shares
to $214.5 billion.

five climbed.

Tomato
Plants

6 Per Basket
Regular 99¢

50°
House Plants

10:
OFF

Hoses,

Sprinklers, 1 %
G
Seed. off

Is celebrating it's

6th Anniversary
SPECIALS

Nine major stock groups
fell during the week while

for its if inflation should rise

SuperValu
Se Wir incase paper, Finance Minister Michael may close

Wilson says the measures would result in a lower statutory

rate of corporate income tax “to benefit all firms in all NORTH VANCOUVER _ Nicol said he has asked the

sectors.” (CP) — A SuperValu grocery union for a cut in wages and
REDUCES RATE store locked out’ its'30 em- benefite.of $4.an hour.

“The basic federal rate would be redbced {fom 36 to'29 Ployees Wednesday and may! * Bryan --Deaton,. Retald
per cent,” the paper says, “so that the standard combined close permanently in a few Clerks Usidi'* @ftkesman,’
federal and provincial corporate tax rate would fall from 46 weeks as the grocery store said SuperValu has a prob-
to 39 per cent.” battle heats up inthe Greater lem, but says there is little

Under the U.S. plan, the maximum corporate rate of 46 Vancouver area. the union can do.
per cent would be replaced with a flat tax of 33 per cent for _ Al Nicol, co-owner of the “If you plunk a state-of-
all tions. SuperV ‘ake, said that since the art supermarket in an

While the figures look good on paper, they don't tell the | the new Save-on Foods store area where there are conven-
whole story. Heavy industries on both sides of the border opened six months ago, his tional supermarkets, the at-
have until now been able to take advantage of the store has been at a competi- tractions of the new store —
investment tax credit and fast writeoffs to cut their taxes tive disadvantage. The Save- the new style and its ef-
substantially. on store is one of eight ‘ _

With those two tax measures removed, the result in opened recently by Over pregen: rbalome Siete =
both countries will be higher taxes for heavy industry and waitea Foods good run for their money,”
lower taxes for the consumer and service sector. While SuperValu and penton said.

Erie Owen, a taxation specialist with the Canadian Save-on have identical labor
Manufacturers’ Association, said that despite the problems contracts with the Retail The union is currently
in reforming the corporate tax system, Canada has very Clerks Union, Nicol said negotiating a collective
little choice. The United Kingdom has already put similar Save-on's meat and delicat- agreement with about 40

SuperValu stores through-

reforms in place and now the United States is moving in this essen departments are non.
direction. union. Save-on also has a oUt B.C., although the North

“If our major trading partners are going this way, six-year, no-strike agree- Vancouver store is negotiat-

Canada has to come up with some resolution, otherwise we ment ing separately because of its
special circumstances.

Basket of 6

$495

throughout the are going to be in the position of not being competitive. We _Nicol said that gives Save
nursery! certainly have to be internationally competitive. on some flexibility and the Denton said if the union
John Bulloch, head of the Canadian Federation of ability to lower wage costs in responded to Nicol’s request

di i agreed that reform was inevitable if an industry where wages are for acut they would soon face

" an He of ds for

the United States went ahead with its plan. If corporations the “single most i
in Canada paid higher taxes than their competitors in the contributing factor” to oper:
United States they would be at a disadvantage, he said. ating profit

. Girl
bike. Both excellent condition.
Ph. 365-3423. 34a

Boats * Motors

As time goes by, you'll know why.

SNOW TRAILS
SALES & SERVICE

502-12th Ave., Genelle
693-2382

° Gas
© Groceries | ond cost-etficient advert
ever. 09

1»  F
* Moorage Sn pinee poet te-oned
: <
© Bait

we
"blanket classified ad in more
than 700,000 homes. Your Action
Ad will appear in nearly 80

© Fishing Licences | community newspapers with

more lion !
Call our Action Ad number 365-

Friendly Services | 27i2ior devise. 0/33

3/48

TRUCK cab enclosed canopy with
bed. $400. Ph. 365-6438. 3/48
DRY birch fi
Ph. 365-6342.
TRAMPOLINES! Trampolines!

Various sizes. 13'x13' size, .
Ph, 365-7497 after 6 p.m. _tin/48

ewood $60/cord.
3/48

's 10 speed

New & Used
Furniture for Sale

Phone 399-4793

DRAIN rock, sand and fill. Pou!
ue . 359-7926. tin/46

Pool & Spa Sales

For Better or For Worse°

by Lynn Johnston

tenance. No pets.

FREE ESTIMATES
Call George Ross
Shop Manager

MALONEY’S AUTO BODY — 365-2155

and Service

MILD

BioGuard Chemicals

CALL GARY AT
VALKYR AQUATICS

KING-SIZE waterbed with mirror
headboord and pedestal. Ph.
365-6727. 3/48

APPLES, 30 Ib. box. Reds $7.95,
.45. The Little House

Fruit Stond. One mile North on
4 6 Crescent Valley. Ph.
759. 3/48

$6.37 kg. ib.

Two-Gallon $7.03 kg. ib.
PAILS /
fy etc., etc., etc.
ONLY
*1.50] « Only at
EACH

concessions because of other

NEW OFFICE HOURS

Castlegar Branch

of

Kootenay Savings Credit Union

Commencing Monday, June 24

8” Hanging
House Plants

Large Selection of
Early and late Cabbages.

Broccoli, Cel
Head and Leot Lettuce. Strawberry Plants.

. Cauliflower,

Patio Cedar Box
Arrangements

OPEN: Monday to Thursday — 104.m. to5 p.m.
Friday — 10 a.m. to6p.m. .

CLOSED: Saturday and Sunday

All Bedding Plonts
Now on Sole!

INDIVIDUAL BEDDING PLANTS save
$650 tt we 0
CARNATIONS « ro: 75¢ 20 %
POLKA DOT PLANT to. #1 20 99¢
Plant Taking Orders
—_ Shade Trees For the Finest
Save 10% &Evergreens | Quality Turf!
20% Large selection
Now OFF of cut flowers!

Kootenay Savings Credit Union

Complete
Residentiol&
Landscaping Service.

2601

- 9h Ave., Castleger
Open 7 Days a Week — 9a.m. - 7 p.m. — Call 365-7312

=

Where You Belong ,

Closed Canada Day, Monday, July 1

Mother

Heavy duty all-purpose

25¢ tor each time ad appeors
(Minimum charge 75¢.)

days after it first appeors
$1 charge does NOT ap-
ply to Vise and MasterCard

Print your Action Ad on o
piece of paper ond

Ads

mail to:

All. advertisements such os

Help Wanted must comply

with the British Columbio
Rights Act. Thi

This Act
states no may
state or imply © ood

. OF on
the bosis of on applicont's

plostic pails with tight-titting
les.
9 tendon Hoot Nature’s
CASTLEGAR NEWS
First 10 Words $3.50
Additional Words 15¢ 197 Columbia Ave. Pan
3 insertions tor Price of 2 J
?
Reduced Rates FORD fi see canopy, $250. Downtown
See tet ter 8 1D fiber: nopy, $250.
19x, 10x, 26x, 62x, 104x Se “ap galore condition. Castlegar
° : oSt0,
‘ere Also Available ng, $30, "baby, woken, $10. 365-7750
Attention Getters 365-7651. 3/48

CLEARANCE SALE. Entice 9s
Ya-price. Consignment Shop.
1007 - 2nd St tin/43

STATIONERY SUPPLIES
OCOPYING

WHETHER YOU ARE BIG or
SMALL, TALL or T, our

RAWLEIGH weer, maternity toshions
PRODUCTS | |prce:

INCLUDE THE PRICE: When ad-

vertising items for sal i's
al the

ways advisable to stat

price. e phone
if no price is mentioned. ed ins 19

$989

$219

~~ fmol B —_,

78" rock by the dumptruck lod,
WEDDING STATIONERY | 25-5769. 0 007/47
GENERAL PRINTING

S2Hel Prinr2) nerves

623 Columbia Avenue
365-6385

Somes ware Fest right. Con:

sae nee inven JOIN US
ah  - Corowe

tnwors Bese seokeroot verse: | PRE-INVENTORY
Gutter. 365-3240. 104/23 SALE

We hove sportsweor, lodies
all reduced to incredibly low

Aluminum 3657379.
Sheets pond need poe alg
nisin classified word ad ston, $98.
24'A" x 36! You may advertise in this
ice at regular | ‘ree be caeriieed, but the
(to 12. —78¢ bach, price and get the | cise must not toral over $20 ond
25 or More — 50¢ Each third insertion Sond. Wo wil on your od
at three issues.
CASTLEGAR NEWS NO =e
197 Columbie Avenue CHA Ee
—— 7% . forP a6 PETS & LIVESTOCK
USED GUNS bought ond sold L _,
rade. Wises Hordw: REGISTERED Germon
hoired pointer stud.
‘gi i S z MISC. FOR SALE
original price. Consignment NINE-YEAR:
Shop. 1007'2nd $1. nad terhorse/sadi
Needs

SEE what Mary Koy cosmetics

can do tor you. Fran. 365-7857
3 ——E

lient condition $100.

student desk. Ph.

5588. 1/45

120-GAL. TIDY TANK with elec-

tidy tank. Two

HEALTHY BEDDING PLANTS.
Organically grown, $1 and uj
per carton. Open weekdays, 1

m., weekends 11-2 only. 365-
3701 tin/al
QUALITY TOP SOIL and gravel. 6-
d. loads, $60 12-yd. loads. $110.
13 ‘ott, 959-7926. 18n/40

Ta ED top soil
available. 352-6187 or 352-5960.
= ee

SPECIALS
BEEF & PORK

‘Quality Guaranteed

Sides of Lean pork
95¢ Ib. caw

swes $1.72 caw

OF 5 TON DUMP TRUCKS

Tenders will be received by the City of C

Call Lena — 365-3643 Ginette’s Creation twnos $2.19 caw
Your Castlegor Above Bob's Pay 'n Tokit Fronts $1.49 caw
Distributor Castlegar 365-2793 Rasen acbpe
f > THE CITY OF CASTLEGAR oun ATS
S Canyon, B.C.
SY TENDERS FOR SUPPLY [| _ Ph. 428-5613

DOOGE
7815.
WHITE BATHROOM | sink

CLEAN, single bed. 365-2371.
wage

* Fridge and Range included
* Very Clean and Homey
* Would furnish on Request

BABY BUGG'

stroller ond cat-bed. Window in
wooden frame, with openi
3 10"«5'3".

FOURTEEN.
each. Yeor
‘2s

ches. Finished ural a
$225. Metol dratting table, $175.
365-7379. “0

6 McC
New condition. 359-7256.

TRAILERS FOR RENT, pods
itable for 14 wides. Cedar

Y that converts to

3

365-3205. v

callers condi on, $375. 365-2642

wage

‘ond ben.

natural, cedor

RENT
THIS
SPACE
365-5210

HOUSEKEEPING UNITS. /Fully

including | minor

sek eepn jinen, towels,
desired. tose

me yard 365-
* “Wa

en’
venient
ation. Non-
$295/month with utili
6284.

Clean Furnished

ONE BEDROOM bosement
close to downtown. Partly

2 BDRM. SUITE. Batchelor suite,
both portly furnished. 365-2188
7

SPACIOUS 3 bdrm.
1 apartment.

m:
ties.

toc

jicants. Cont 33
dsay, British Columbie Hovsis
‘Management C

commission
7/46

THREE-BEDROOM house, semi-
furnished, $300/month. 365.

tins 46

Laundry facility
365. days. 365.
a
‘aporiment. For
call 365-2128. tins

ALUMINUM sheets. ideo! for
‘coting, siding, or

1 can even be
. used for vopor barriers and any
kind of construc

until 3:30 p.m. P.D.T. July 9, 1985 for public
opening in the Council Chambers at City Hall, for
supply of the following items of equipment:

1. One (1) new 5 Ton Dump Truck with One Way
we

2. One (1) new 5 Ton Dump Truck

Specifications governing supply of equipment

and appointments for viewing of trade-ins may

be obtained at City Hall, 8:30 a.m. to 4:30 p.m
Monday to Friday, phone 365-7227

The lowest or any tender will not necessarily be
accepted.

Sealed tenders, plainly marked “Tender for Sup-
to:

G.R. RESHAUR, P. ENG.
City Engineer

ply of 5 Ton Dump Trucks”, are to be addressed

tion. These used printing press
plotes (.009 24% x36 inches)
ore priced as follows: One to |

75 cents each: 13 to 24, 60 cents
‘each: 25 or more, 50 cents each.
Apply Castlegar News, 197
Columbio Ave., Castlegor. tin/22

12-FT. deeptreeze. 4-yeors-old.
365-7005. v0

1977 350 COMPLETE motor. $300.
399-4490 at EZ)

KENMORE 10,000,8TU air con-
ditioner. Excellent condition.
5 wae

Highway Dr.
in Glenmerry, Troll

on. 7336

A.M. FORD

’' Your Ford Country Headquarters

motter

tenance of public decency City of Ud

penance of Cvevel ten book nd cohendte’ DELL DENNIS

obtained sro the Humon 8. ~ ve “Save $$$ with the

Apne ) Levin 167 Auto Sellers at A.M. Ford”!
———————

YOU CAN PUT A
PONY IN YOUR LIFE
FORAS LITTLEAS.......

$6345

PLUS FREIGHT

Simply pay the tax-as your
down payment and drive away

$
FOR AS LITTLE AS 1 50 PER MO.
BASED ON 60 MO. BANK FINANCING INT. 13.75%

— TRADES WELCOME —

Hyundai Sales
OF PONY & STELLAR ,