iev
return

THE MAIN news about the
new personal income tax
return is good. And that’s a
relief.

Tax reform has taken a long
time to progress from original
proposals to modified proposals
and finally into law. It’s been a
confusing time for everybody,
especially ordinary mortals who
now have to live with the new
rules.

I was particularly worried about
the new tax return. With tax cred-
its replacing many tax deductions,
I visualized a totally new form
which would baffle even the best-
intentioned taxpayer.

I have just seen the latest ad-
vance draft of the T1 personal tax
return for 1988. And I’m pleased
to report it’s not as bewildering as
it could have been.

Sure, there are changes that will
make filing your return more con-
fusing and time-consuming. I'll
mention some of those later, but
first let me run through key areas
of the 1988 return.

The front page is similar to last
year’s (although the $500 employ-
ment expense deduction is gone).
You list your various sources of
income and add them up to pro-
duce your Total Income.

inco:

looks

On top of page two, you claim
deductions like pension and RRSP
contributions, union dues, child
care expenses, business investment
losses, moving expenses, alimony
or separation payments made and
carrying/interest charges.

Although many deductions have
turned into credits, items like the
preceding remain as deductions.
That means the higher your tax
bracket, the more tax you will
save.

dollars

and sense
Mike Grenby

In other words, if you are in the
45 per cent tax bracket (the exact
figure differs from province to
province), a $3,500 RRSP or
alimony deduction, for example,
will save you $1,575. If you are in
the 26 per cent tax bracket, the
same $3,500 deduction will save
you only $910.

After claiming these deductions,
you arrive at your Net Income.
That’s an important figure for a
dependent relative. The relative’s
net income could reduce the sup-
porting person’s claim.

Then you have several more
deductions to produce your Tax-
able Income.

To solve the changeover pro-
blem from deductions to credits,
some genius in Ottawa decided to
use the term ‘‘amount.’’

So from your taxable income

Demonstration siated

From page 34
Canada, rather than just in Bri-
tain. The development has injected
a new North American vitality into
an ancient craft.

Said marketing director David
Bruce-Thomas: ‘‘[t’s all heritage
that we deal in. We’re not just
talking about Scotsmen, but peo-
ple in general.”’

For more information, contact
the studio at 987-4772.

whe ke

ROYAL DOULTON ceramic artist
Keith Wilshaw will be making a
personal appearance at Eaton’s
Park Royal Sept. 30 and Oct. 1.

Wilshaw will be demonstrating
figure painting skills and will ex-
plain the process of Royal Doulton
figure production. He will be ap-
pearing Sept. 30, 11:30 a.m. to 2
p.m.; 5 p.m. to 7 p.m. and Oct. 1,
11:30 a.m. to 1:30 p.m. and 3 p.m.
to 5 p.m.

BUSINESS

e tax

you then deduct the various
amounts: personal, $6,000; age (65
or over), $3,236; married, up to
$5,000; children, between $388 and
$1,471; pension income, $1,000
(this ‘amount’? is still deductible,
although the $1,000 investment in-
come deduction is gone); own
disability, $3,236; tuition fees,
education and medical (all within
prescribed limits) and amounts
transferred from spouse.

Multiply the total by 17 per cent,
add a calculation for charitable
donations, and voila! ~- you have
your total tax credits. These are
called ‘‘non-refundable’’ because
if you end up with no tax to pay,
these credits will not produce a re-
fund.

You then calculate the federal
tax you owe on your taxable in-
come, add or subtract various fed-
eral tax adjustments, calculate
your provincial tax, subtract any
other federal or provincial credits
that apply to you (and these could
produce or increase a refund), sub-
tract tax you've already paid, and
double voila! — you end up with
your refund or talance owing.

I’m sure problems will pop up.
But that’s to be expected, con-
sidering how radically the tax laws

See Tax
Page 41

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35 ~ Wednesday, September 28, 1988 - North Shore News

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PE eres)

British Columbia Legislative Assembly

SELECT STANDING COMMITTEE
ON
FINANCE, CROWN CORPORATIONS AND GOVERNMENT SERVICES

FINANCIAL PLANNING INDUSTRY

PUBLIC HEARINGS

Tuesday, October 18, 1988
Commencing 9:00 a.m.
Capri Hotel
1171 Harvey Avenue
KELOWNA

Monday, October 17, 1988
Commencing 9:00 a.m.
The Westin Bayshore
1601 West Georgia Street
VANCOUVER

Tuesday, October 25, 1988
Commencing 9:00 a.m.
Douglas Fir Committee Room
Parliament Buildings
VICTORIA

The purpose of these public hearings is for the Committee
to receive submissions respecting the financial planning
and advisory industry in British Columbia.

Those wishing to appear at any of the above locations
should notify the Clerk of Committees as scon as
possible.

Address all correspondence or inquiries to:

Mr. Craig H. James,

Clerk of Committees,
Room 236,

Parliament Buildings,
Victoria, British Columbia
V8V 1X4

Telephone: 356-2933 Fax: 387-2813

MEMBERS:
Mr. Jim Rabbitt, M.L.A. (Deputy Chairman)

Hon. E. Veitch

Mr. G. Clark, M.L.A.
Mr. C. D’Arcv, M.L.A,
Ms. D. Marzari, M.L.A.

Hon, M. Couvelier
Hon. J. Jansen
Hon. A. Ree

Hon. B. Smith