NOW. THAT: the numbing’ shock of Ottawa’ s “pay now, _ pay later” budget has begun to wear off a jlittle, Ict’s 5 review the main tax proposals to try to. ease the pain. : Don’t be totally dismayed by the higher taxes you face. Rather, be motivated to redouble your efforts to, plan :your. finances. to take .ad- vantage of every le legal -way.to keep: ill to an ab- . your - personal’ tax solute minimum. > @RRSPs* FLATTENED .AGAIN. Most of the good news about. pension and. RRSP reform has been postponed: ‘for a‘ fourth’ time. So you won’t be able’to save more tax as you might have hoped. Unfortunately, . proposals . -— which could: raise your taxes — are going ahead on . schedule. - . . “The. government’s focus is ‘clearly on cost control,’’ said Don Smith, senior vice-president of The Alexander Consulting Group, and’ an actuary who has served as a. consultant to Ottawa since 1983 on oe its: ‘pension-.reform | program. “There is less emphasis on the . original objective of “making. the program -more fair for everybody.” -. ‘The limit on contributing toa registered retirement savings plan was to have risen to’ $10,500 for the 1990 tax year. Instead, it will remain at. the $7,500° level, the - same as this year. “If you belong to ‘believe that when it : ~ A’ tiny. bit of good ‘news: the - “maximum stays at .20:per cent of : :earned income for: 1990 instead of . dropping to 18 per cent. The delay. means you will not be : the bad ..news” a pension plan, ‘your: limit stays at $3,500 minus any money you -put into the pension plan. In 1991, the maximum RRSP contribution: “should. rise tothe originally planned $11,500, but Pl happens. - allowed to carry forward unused RRSP contribution room (that is, ~ the amount of contributions. you were entitled: to make but didn’t) until the 1991 tax year. - Your 1990 and 1991 RRSP con- tribution limits will now be based. on your earned income and pen- sion position in 1990. So make any plans you can for 1990 to allow you as high an RRSP contribution as possible. Despite delaying most» of the .- proposals, Ottawa is still going to” . 1989 through 1994. make this year the. last. in. which you may roll over up to the total of all your pensions into your own RRSP, above the normal’ limits. Don’t miss this opportunity if it - makes sense — and dollars to tax savings — im your financial situa- tion. - OK Tire has been profes- ‘sionally selling & repairing . brakes, shocks, front end & — wheel alignments since 1953": FACT- OK tire is the “largest inde- - pendent Tire retailer in Can-— ada, with over 87 outlets to. serve you FACT. - Professional ; service, qual- | ity worksmanship & satisfac- . tion guaranteed FATT, (Check our prices and see @ GOODBYE, THREE-YEAR RULE. Ottawa wants. its taxes sooner. So when you buy any compounding investment (like a compound Canada Savings Bond or guaranteed investment certifi- cate, strip ‘bond, annuity) after 1989, you » vill have to declare the income earned every year — even though you don’t receive the money. With compounding investments ‘you now hold, you may continue dollars and sense ‘Michael Grenby ae About the only good news: Ot- ". tawa will still allow you to put up to $6,000 a year of your émploy- ment pension. (not CPP or OAS) into--your spouse’s RRSP from All these RRSP. and’ pension reform rules are now supposed to be tabled this summer. But don’t hold: your breath: The whole pro- ‘gram itself could change because of all the changes since pension reform was first proposed in 1984. to follow the old rule: declare the ‘ interest every year or every three years. *® GOODBYE, BABY BONUS AND OAS? If your income is more than $50,000, you will have to repay some or all of any family allowance or old age security pay- ments you received during the year. If this affects you, explore every possible way to reduce your in- come to $50,000 through, for ex- ample, splitting income with a spouse or other family member in a lower tax bracket. @ TIDBITS. The budget will raise'the interest rate charged on taxes owing and paid on refunds by two per cent effective Oct. 1. If ‘you are a working disabled person, ‘you will be able to deduct (within limits) the costs of care provided by a part-time, unrelated person. Ottawa is confirming, its’ inten- tion not to tax col services (subject to- certain: restrictions) as an employment‘ beuefit “if : they relate to health, re-employment or retirement. © OH, THANK YOU!. Ottawa did not change | the: rules, on tax- free capital gains, various invest- ment deductions and credits, in- come-splitting and. other breaks...at least not this time.. I guess the government will have its hands full imposing — and col-’ - lecting — the new: nine-per-cent goods and services tax on almost © everything you buy, due to start: Jan. 1, 1991. Better buy now so you can save tax later. wwe Based. locally, Mike Grenby writes 2 money column which ap- pears in’ newspapers ‘across Canada. . Although -he.also works as. an independent financial. ad- viser, Mike will respond to readers’ questions and story. ideas through the paper. Write to Mike Grenby, Money . Columnist, North .Shore News, - 1139 Lonsdale, North Vancouver -V7M 2H4, Mike cannot reply in- dividually but will answer as many — : of your letters “as. -Possible in his column. A group of prominent citizens has , been named by the Minister of State for the. region to sit on the Greater © Vancouver Transportation Task Force. “: The Task Force is to develop and _ recommend to. the Greater Vancouver Regional District Board and'to the Provincial Government a comprehen- sive Strategy. and long-term transport- ation plan for the region, for implementation by the Federal, Provincial and Municipal governments. _ Community input is sought through _written submissions and public - meetings. Individuals, groups and | businesses are invited to write or make: oral’submissions directly to the Task * Force, outlining ideas, concerns ‘and ~ recommendations on regional pass-. a enger transportation and goods: movement issues, including: road, |: transit, rail, air and marine transport ation issues. Submissions ¢. can be presented at " public meetings.or they can be mailed we tothe Greater Vancouver Transportation’ * - Task Force, c/o Greater Vancouver - Regional District, 4330 Kingsway. Burnaby V5H 4G8.. The deadline. for: submissions is May 24, 1989. For more information. contact the - Task Force at the above address. or. _ Gall 432-6385... 2 se: Bhat PUBLIC MEETING SCHEDULE Thurs. May 4 Langley Tues. May 9 . North Shore Wed. May 10 Surrey . Thurs. May 11 Coquitlam - Tues. May 16 Burnaby Wed. May 17 Richmond Vancouver Tues. May 23. Provinces of British Columbia Hon: Elwood. N.Veltch Langley Civic Centre 20699 42nd Ave.. Langley Larson Elementary School © 2605 Larson. North Vancouver Surrey Inn’ 9850 King George Hwy.. Surrey Best Western Inn . 319 North Road, Coquitlam Operating Engineers Auditorium 4333 Ledger, Burnaby : Walter Lee Elementary School - 9491 Ash, Richmond . Robson Cinema. Robson Centre 800 Robson. Vancouver 7to 10 p.m. ~ 7.to 10 p.m. 7 to 10 pm. To 10 p.m. 70 10pm. “To io pi. 7 to 10 p.m. ~ { State for Mainiand/Southwest j... -.