page 16, February 16, 1977 - North. Shore News “Tl uces a — Tax Taik Qo From ‘The Institute of Chartered Accountants of British Columbia . High tax rates and infla- tion make saving for retire- ment one of your biggest ‘problems today. To ease this problem, many provisions have been put into the Income Tax Act to help you accumulate savings for ret- irement. In general terms, if your savings | are put into a “‘registered”’ plan, contrib- utions will be deductible from. your income. The income earned by. the sav- ings will be sheltered from income tax until your savings - are taken out of the pian. The two most common -. types of registered plans are the Registered Pension Plan (RPP) and the Registered . Retirement Savings Plan (RRSP). An RPP can be set up by either an employer or a trade union for its employees or members. Both the. individ- ual employee and his em- ployer may make contribu- tions into the RPP. If your contributions into the RPP for your services in the current year are withheld from your wages by your employer, or paid as part of your union dues, you may | deduct those contributions from your income up to. a maximum of $3,500 for the | year. In addition to this, you “may, in some cases, make. more deductible contribu- | tions to the RPP for’ your services in past years. PRIVATE PLAN An RRSP, on the other hand,. is available. to an- individual who is not in an RPP, or who is in an RPP but does not put the maximum $3,500 into it. The RRSP is. . like a private perision plan which covers only the one. ‘person. claim Stanley Park | "Squamish administrator Indian Band register a land claim: against Stanley Park because ‘‘We are convinced it is Indian Land and feel we have a claim."" Mathias stresses: ‘We know the park once belonged to our people because they were born, lived and died there until only a_ few decades ago." The Indian leader adds that he also wants to find out ‘‘who pushed our people off it and what means the government used to acquire the 1,000 acres site. The park was declared a military reserve by the Royal Engineers in 1863 and dedicated by Lord Stanley in 1869, Later in 1908, the park was leased to Vancouver City for 99 years by the minister of militia and defence of the Dominion of Canada accord- ing to old records. Joseph W.: f Mathias ‘says he plans to. The amount which can be. deducted for contributions to an RRSP is limited to 20 per cent of your earned income for .the year, up to a maximum of $5,500. How- ever, if your contributes to an RPP for you for your current year’s employment, the $5,500 maximum is reduced _ to $3,500, and the deduction of contributions to both the RPP and RRSP is limited to $3, S00 i in total. A 1974 amendment ‘per- mits . taxpayers to make a - contribution into an RRSP for : their spouse and deduct the contribution from their own income, ‘so long as_ the contribution : plus contribu- tions to your own plans are ~ not more in total than your permits. tax-- limits. This. payers to transfer some future retirement income to their spouse and still obtain the tax deduction. the Contributions into’ RRSP may be deducted from if they are paid: within the year or up to 60. income ’ Plaza Mosaic Tile (for floors and walls) 1'xt" mosaic 1¥2''x1%'' mosaic 1%2"'x3"’ mosaic 1''x2"' mosaic 2''x2'' mosaic 3°'x3"' mosaic empioyer | Why not start the New Year with a brightn new kitchen? Browse _ through our. showroom, over 7,000 sq. ft. of kitchen displays. (your, neighbo hood kitchen centre) [ATED KITCHENS North Shore 1378 Main St., Vance Bakery and Mountain tHwy. F99¢ jaq.tt. CDV sq .tt. al | 19 $119 /sq.ft. R, TILE days after the ‘end of the - _~year. ‘UNTAXED DOLLARS : Since contributions into _ the RPP or RRSP within the limits are deductible from income when you are calcu- lating how much income tax you have to pay, you are able to save: “untaxed’’ dollars. eer oe Also, the earnings from these savings are not taxed so long.as they are left in the ‘Tegistered plan. | This means that, in a registered plan, there - are. more funds earning income, _and this can produce sub- stantially greater savings by . retirement time than if. you try to save out of your income after taxes. . Income tax will have to be paid on any amounts which are received out of the plan in the year they are received. This would include both the. © accumulated savings and the © accumulated earnings on the savings, and would consist of cabinet units. with: a complete kitchen remodellirig ‘free: éstimates - _.s.and our newly expanded premises offers one of the largest selections of decorative wall and floor ‘tile in Western Canada. Our display room features Imported ceramic tile from Italy, Spain, France, & Germany, etc. We have all of the tools and accossories for the ‘do-it-yoursolfer’. or you can have it : Installed. by our bonded professionals. Drop Into our exclusive showroom, select the tile of your choice, and we'll give you a free ostimato and in-home consultation. expansion specials — /eq.ft. ROSEN & CERAMICS Fashion Centre North Vancouver, between Venice _ 985-7515. such things as withdrawals on the. cancellation. of the -plan, or pensions or retire- ‘ment annuities. It is‘also important to know that if the. RRSP is ‘‘dereg- istered’’ the entire amount accumulated in the — plan . becomes taxable in that year. After. retirement, your income will likely be: less than during your working years and so you will be in a lower tax bracket. The tax on — funds being received out of - your registered plan. would therefore be less than the tax- saved in earlier years when the contributions were made. “SELF DIRECTED” “If you wish to set up ‘an. RRSP for yourself, there are many organizations ready to help. A mutual fund sales organization or trust com- pany will normally arrange for such a plan if one of its mutual funds or pooled funds is selected as the investment for the plan. . Similarly, a life j insurance company will arrange a plan 6' 'x6' ' decorative wall tile 99° /6q. ft. A 4''x8"' @ glazed floor tile $4" /oq.tt. Store Hours Mon-Sat. 9-6 (Friday tit! 9) 149 Weat 3rd Sj. North Van, . 980-2218 : judgment i imk INVESTING, Baawrany ‘you to select and change the . plan’s investments. within those . permitted ‘by the Income Tax Act. ‘One word of caution: In the heat of saving immediate _ income tax you . should :not - lose sight of the fact that vou Seow are: making an investment. are “furids: | if the plan's invested in the. savings | You should take. care to portion of one of. their life ensure he pian’s invest-— insurance policies or in one. ents have the proper degree of income potential, growth potential, and. secur- ity, ‘suitable to your partic- ular situation, having regard — to how soon you intend to retire and the amount of retirement: income | you will need.. of their managed funds. If you wish to use your own invectina. manv ; trust companies will set up and .administer a ‘‘seli-— directed” plan, which allows Arrange your insurance and licence plates — professional advice. ‘Avoid the last minute rush. HOURS. Mon—Fri 9 a.m.:- 6 p.m. . Sat. 10 a.m. - Romney Copping. 4 p.m. 143 Lonsdale Ave.,. North Van. — 985-3161 Forms were mailed recently to all Pensioners now receiving the Guaranteed Income Supplement. | To ensure continuing payment of your Supplement beyond March 31st you must reapply by completing the application form and returning it as soon as possible in the addressed envelope enclosed with your form. A special office will be openéd in your area where you will be given all the help you need should you have any problem or would like assistance. Your special office will be located at: OAS District Office | 1525 West 8th Avenue — Room 107 Open daily — 8:00-4:30 Tel.: (604) 732-4181 Health Santé et and Welfare Bion-étre social . Canada Canada Marc Lalonde, Minister »