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Your Number One
— Newspaper

of more than

“February 9, 1986 News 985-2131 Classified 986-6222 - Circulation 986-1337 56 pages 25¢

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The seizure at the Lonsdale
Quay Pinecorp research and
development building is the result
of investigations by Revenuc
Canada into the financial dealings
of the corporation and its 12 sub-
sidiary companies.

Writs of $6 million and $12 mil-
lio! have: been filed against
Pinecorp Research Corporation
and Pinecorp Energy Research
Corporation by Revenue Canada.

With interest, the total amount
sought in the seizure is close to $20
million.

Revenue, Canada. is attempting
to recoup a portion of the $25 mil-
lion in tax credits that were origi-
nally awarded to Pinecorp for
research and development projects,
but were used to acquire such pro-
perties as a local shipyard and res-
taurant and a Surrey condominium
development.

LOADING ASSETS

Deputy Sheriff R.D. Akin of the
Vancouver sheriffs’ . department
said Friday moving crews had
worked to midnight Thursday and
would work all day Friday loading
semi-trailers full of office fur-
niture, filing cabinets and other
office equipment from the North
Vancouver building.

Seizure of Pinecorp property
would be concentrated at the cor-
poration’s North Vancouver prop-
erty, but could move to its offices
on the 19th floor of 999 West
Hastings, Akin said.

Apart from the office property,
sheriffs are trying to track down $2
million worth of Pinecorp com-
puter equipment originally listed as
company assets.

Public Affairs officer for Reve-
nue Canada Taxation Ina

formation into specific investiga-
tions was confidential, but she said
about. Pinecorp: ‘“‘If Revenue
Canada is taking action, you can
NEWS photo ian Smith : presume that it is justified.

x OFFICE. equipment is removed from North Vancouver! s Pinecorp research and- development. building - -
on-Friday afternoon. Revenue Canada began seizing Pi ecorp assets Thursday night and has filed two a
writs galist Pinecorp Research‘ Corporation ‘and Pi ecorp “Energy Research Corporation ‘totaling’ $20" “F
millio .

NATIONAL AUDIT

‘McMillan said an extensive na-
tional audit was being carried out
across Canada by 100 Revenue

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McMillan said Friday that all in- .

y sheriffs
1 $20 MILLION In TAXES
| SOUGHT BY FED GOV'T

VANCOUVER sheriffs began seizing Pinecorp Research
Corporation assets Thursday evening in an attempt to
regain $20 million owed to Revenue Canada.

Canada auditors into’ the various
dealings of Scientific Research Tax
Credit (SRTC) companies since the

program officially ended Dec.
1985.

Pinecorp Research and
Development Corporation was
launched in 1984 on: the sea of in-;
vesime... funds loosed in January,
1984 when the/federal SRTC, pro-
gram was given royal assent.

The corporation originally raised
$25 million with a scheme to turn

forest biomass into saleable

products.
But Pinecorp’s North Vancouver

’ properties have since suffered. col-,

lapse or bankruptcy:

© Bel-Aire Shipyard Ltd. closed
its doors after 25 years at the end
of January;

® The Harvest Eating House has
been abandoned since it was osten-
sibly purchased by Pinecorp in
September, 1985, and a writ has
been filed against Pinecorp by the
restaurant’s original owner;

* The Pinecorp research and
development building, scheduled
for completion in October 1985,
remains unfinished.

BILLIONS INVESTED

McMillan said that 1,862 com-
panies had filed 8,572 SRTC re-
quests since the program began.

A total of $6.8 billion was
subsequently invested in SRTCs, a
figure which she said translates to
$3.4 billion worth of tax credits.

“From that total,. Revenue
Canada is looking to retrieve $2.6
billion in tax revenue,’’ McMillan
said.
~ Between $400 and $500 million
is currently considered by Revenue

* Canada to be at risk, McMillan

said, |

“Legal action is being taken in
those cases where the recovery of
tax revenues is considered to be in
jeopardy,” she said.

Thus far, $120 million have been
retrieved by Revenue Canada
through such action, she added.

Pinecorp -officials were
unavailable for comment.

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