SURPRISE! THE 1988 tax return really is quite user- friendly. Even though tax reform has changed some of the underlying tax principles of past years, you should be only challenged rather than overwhelmed by the new tax return. That’s the conclusion reached by a group of local certified general accountants. They felt many indi- vidual taxpayers who have prepared their own tax returns in the past should be able to continue to do so. “However,”’ said one of the CGAs, “‘if you read through the return and feel unsure about doing the job yourself, or worry you might miss out on a deduction or credit, it could make sense to have & professional do your return — at least for this year.”” ~ “Once you see how the new rules apply, you might then want to start doing your own return again in the future, using your copy of the 1988 return as a model.” The CGA said many people are confused by the term ‘‘non-refun- dable tax credits’? which describes one of the major changes in the tax system. In the past, a $1,000 deduction (for pension income, for example) would have saved you $250 tax if you were in the 25-per-cent bracket, $400 if you were in the 40-per-cent bracket and so on. Now, the pension income deduc- tion (in this example) has been converted to a 17-per-cent federal tax credit, which, together with the resulting provincial tax credit, produces a tax saving of about $ In other words, your tax on the first $1,000 of your private pension income is reduced by $260 — whatever your tax bracket. “Non-refundable’’ means that if your total income for the year was $1,000 of private pension income, you would simply not pay any tax — but you wouldn’: get a refund For over 75 years Certified General Accountants, serving as expert financial your leisure. advisors, have been partners with the business community. Now, we're proud to be in partnership with your community newspaper and Mike Grenby to bring you the 1989 Money Show and seminar: “How To Make Investing Pay Off.” Don't miss this opportunity to get the information you need to plan your financial life. On hand will be CGAs and other expert financial advisors to answer your questions about investment products and services. They'll also provide you with complimentary ATEN. a ree ly" of the $260. This distinguishes these credits from, for example, the child or federal sales tax credits. If your income is so low you pay no tax, these latter credits will produce a refund. To help taxpayers ease into the new system, Revenue Canada has come up with the term “amounts.”’ You add up the amounts to which you are entitled — the “basic personal amount’? cof $6,000, ‘“‘age amount’’ (if you turned 65 last year) of $3,236, “married amount”’ of up to $5,000 — and so on. Then you calculate the total tax credits which will reduce any tax you have to pay. However, many deductions still remain -—— carrying charges and qualifying interest expenses, RRSP contributions, alimony, moving expenses, child care expenses and so on. With these items, the higher financial planning literature to read at The CGA Association invites you to join us at Mike Grenby’s Money Show. Come and make your investing pay off. Certified General Accountants Association of British Columbia. 1355 West Sth Avenue, Vancouver, B.C. Vep ITS Phone 732-211 Professional accountants, shaping tomorrow. 45 - Wednesday, January It, 1989 - North Shore News SAFETY FIRST SAVINGS & MORTGAGE CORP. A Unique, RRSP — Eligible Investment Opportunity Suitable for Conservative Investors Safety First Savings & Mortgage Corp. invests in a diversified portfolio of mortgages, real estate, equities and cash in order to obtain a secure stream of income. This offering of common shares features: ¢ 5 point SAFETY program ¢ DIVIDEND in start-up year ° 10 day cashability (subject to certain restrictions) * No upfront or withdrawal fees © 160% distribution of earnings ¢ Steady cash-flow from income-producing assets ¢ RRSP and RRIF — eligible For information and a cepy of the Preliminary Prospectus please call 732-5626 Fils Gevertinemens docs fot consis an offer to sell or the solicitation of an offer to buy securties, A preliminary prospectus has been filed with the B.C, Secwzities Commission but has not yet become fret The B.C Securities Commission has not in ony wry passed upon the merits of the ascurtes.