EXPECT a_ raise next. “month. But don’t’ spend it “all in one place. 2 As I write this, tax reform still ’ has not:become law. But Revenue ‘Canada plans to apply the new tax "> Christmas’: shopping, “contribution, new tires or a-YCR,- "brackets and credits on “July 1 = anyway. (This is. causing afew. ‘ problems,” but. more ‘about: ‘that “raise”? tater.) : The change is good news, for it means most people will have. less tax withheld from their payche- ques. And if you are self-employed _ or.-otherwise don’t have tax withheld at source, you could also have more moncy. because of lower quarterly instalment payments. - If your’ budget ‘has been tight, those. extra dollars should help a little. v But if you have been managing “all right so far this year and would reserve for an -RRSP like to build a * consider the: following forced ‘sav- ings ‘approach. - Look at the first paycheque you’ ‘get “in July, with the higher take-_ - home figure. - Compare. this’ with © your previous cheque. Then have | your. financial” institution’ “automatically.” If you don’t o anything about : putting away the extra. money,: it will simply disappear: into general “ ‘spending. This mid-summer fi nancial treat results © from’ the. proposal . to “ replace’: the existing 10 tax brackets | ree .brackets,. Ottawa says transfer.’ your. - into a: special . account ; ’ the new figures. mean lower tax. ‘rates for most people. . - Also; so far this year employers have withheld tax based on the higher fi figures (which should create or increase a refund next spring for . almost everybody). i But to sce that extra cash in Ju- ly, you must complete the new TDi form correctly: That’ form tells your employer what : claims ,and deductions you will have when “you fill in: your ‘tax return next _ year. . Wf: you. have | too ‘much tax : ‘withheld, deliberately or otherwise, the government* will have the use of. your. moncy’ until, next spring, without paying any interest... “Hf -you deliberately don't have senough tax. withheld, not. only . “could you face a large tax bill next. year but ‘‘it-is an offence to file a : ‘false return," a as the form warns. : =: - financial institution, ($1000 ory : -your new account; $50 if you | set of 6 exquisite wine. glasses are. yours absolutely free. (with inimum, $250 deposit. Unfortunately, people are runn- ing into problems completing the new TD! form. ' The major change: “credits replace most deductions, Last $1,000 and if you were in the 40- per-cent tax bracket, ‘you'd save $400 in tax. Ifyou were in the 26- per-cent tax bracket:: you'd save only $250. 1f you were in the 45- you'd save per-cent: tax< bracket, $450... This year, a.tax credit ‘lowers your tax directly; you no. longer ~ ciaim .a deduction from: your in-,.: come. So a-$40G.tax credit always . reduces your tax by $400; whatever... your tax bracket. i, "We've geen getting quite ‘a ‘few “ calls from people who are confus- ed about what the | form says — and~ doesn’t | say,’ year. you | -could .. deduct: “But. that’s not true. . said