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Bll - Wednesday, December 5, 1984 - North Shore News

i | LA

Good tax news from supreme court

A DECISION recently handed down by the
Supreme Court of Canada is of great

significance to all Canadian taxpayers.

By BERT WICKHAM

Normally such rulings
would be of interest only to
those people directly affected
and those specialized groups
of professionals who practice
tax and financial planning.
However, this particular
decision will have such a far-
reaching impact on financial
planning generally that all
taxpayers, big and = small,
should be aware of it.

What makes this ruling so
important is that it continues
to uphold the right of tax-
payers to arrange their affairs
in whatever way they choose
fo minimize their taxes, pro-
vided they do nothing illegal.
This has been a basic princi-
ple of tax planning for many
and has

years been con-

sistently supported by the ment in Revenue Canada’s
highest courts in both own Intormation Circular on
Canada and Britain the subject which is) worth

In recent years, however, quoting:

Revenue Canada has increas “dt should be noted that
ingly attacked such ar- the Tax Avoidance Division
rangements if, in their judge- ss has no continuing interest in
ment, they were being cases in which a taxpayer, in
entered into solely for the seeking a beneficial tax
reduction of tax What the — result, has merely selected a
Supreme Court of Canada — certain course of action that

has now said ts that an ar- is either clearly provided for

rangement of one’s aftairs 9 or not specifically prohibued
purely to save tares is in the law and has im-
perfectly legitimate provided plemented that decision in a
that such arrangements are teal way Indeed. the Depart

bona fide in themselves and ment does not view itself as
not otherwise illegal having any special respon

Stangely enough, this sibility in respect of any form
merely bears out the state

of tax planning that consists

of a genuine arranging ot
one's affairs openly and
within the framework of the
law so as to keep one’s taxes
to a minimum.”’

Unfortunately there are
still some taxpayers who feel
that any kind of financial
planning for tax reduction ts
a somewhat sordid practice at
best and probably also itm-
moral, unpatriotic if not
downright illegal!’ And so
they bury their heads in the
sand and continue to pay ex-
orbitant and unnecessary
taxes.

For the truth of the matter
is that Our tax system is not
only unfair but also com.
plicated. Nevertheless, it ts
not beyond the ability of
reasonably intelligent people
to understand once we pul
our minds toi Hf we do not
take the time and trouble to
understand the way it applies
tO Our particular situation
then we will pay a heavy
penalty in taxes that could
have been Jegitimatels
ay oided

The intormation depart
ment of Revenue Canada
does a very good job of pro
viding circulars and booklets
in addition to the yearly tar
guide All we have to do ts
take the tume to study it and
then to arrange our affairs in
such a way as to keep our
taxes to the legal minimum

Remember, the Supreme

Court of Canada has just
confirmed that mow okay to
do so and from that ruling

there 18 no appeal!

GIVE BLOOD. GIVE LIFE!

Hemophiliacs and Red Cross

are counting on you!

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