BUSINESS .

Most Canadians pay too much tax

MOST CANADIANS pay more income tax than the law requires, according to a survey carried out by. the country’s largest firm of chartered accountants. -

-. That’s the bad news. The good news‘is that over the next ‘several ‘weeks, we are going to help you

correct that situation. : The North Shore News and Thorne, ._Ernst .& -Whinney, ’s.. largest CA firm, will

provide you with more than three

dozen ways you could reduce your personal income tax bill.

‘:“We'll also show’ how typical taxpayers — a couple with two young children, a single parent, a

_ fetired couple — can use these tax tips in their own situations,”’ said Peter Wypkema, Vancouver direc- tor of marketing and client services for the firm.

‘Some approaches, and most are quite basic, could save you thou- sands of dollars this year. Summer is the ideal season to carry out tax

planning: financial institutions and advisers have the time to help you

and sense Michael Grenby ee

implement the appropriate steps. But be warned. Delay could cost you those thousands of dollars. By next spring, when most people turn to tax matters, it will be too late to

_ Save much money for this 1989 tax " year.

Watch taxman and save money

ALWAYS KEEP your eye on the tax man when you divide assets during a marriage breakup.

In last week's Dollars and Sense column there wasn’t space to run * thisexample which shows how a

little tax planning can save thou- -

sands of dollars.

George, 45, has a $50,000 RRSP, a pension worth $10,000 - and $10,000 equity in his home. He and his wife Georgina agree she

is entitled to half of the family

assets, at $35,000.

Now they have to find a way to transfer this money to her. George wants to settle his obligation by us-

_ing the money in his RRSP and possibly pension.

_Let’s say Georgina wanis

$15,000 of the settlement im-

mediately. She is in the 26-per-cent tax bracket while George is in the 45-per-cent tax bracket.

George would have to withdraw $27,273 from his own RRSP to have $15,000 left after tax to pay Georgina.

Instead, he could roll over only $20,270 to Georgina’s RRSP, which she would then withdraw. After paying 26-per-cent tax, she would have her $15,000.

So George saves $7,003 by using the tax-free RRSP rollover.

If Georgina didn’t need: ‘the money immediately, an actuary would calculate the rollover

amount required depending on, ‘-among other: things, what tax

bracket Georgina would be in when shé eventually did take. out the money.

lions gave hosoital

NORT H AND WEST VANCOUVER _ HOSPITAL SOCIETY

NOTICE OF

You can expect almost a guaran- teed payoff for any time and effort you invest — as the survey Thorne, Erast & Whinney conducted among its tax specialists indicates.

**Most Canadians could pay less income tax,’’ said Tessa Marks, a senior’ tax manager in the com- pany’s Vancouver office.

‘People are unaware of the benefits: of financial planning. Or they are ‘overwhelmed by the com- plexity of the Canadian tax struc- ture.” .

Shelley Levine, a tax partner in

the firm's Toronto office, said she

felt most Canadians earning be- tween $35,000 and £20,000 a year could pay less tax if they knew

’ about all the deductions and tax

credits available — ‘‘and this in- formation is not all in the tax guide.”

Barry Travers, a senior tax

manager in Halifax, said when he.

reviews new clients’ tax histories, “in 60 per cent of the cases they could have been paying less tax.’’

Again, it’s because people lack knowledge, or are not willing to take the time to plan their finances more effectively.

The three experts cited just a few steps people could take to cut taxes.

“‘Make full use of RRSPs’’ was a unanimous recommendation. Levine said ‘‘terribly large numbers of people’? won’t even buy registered retirement savings plans.

Marks suggested considering dividend-paying investments to in- crease the after-tax return. Also,

‘she said, if you have a business,

talk to. an expert before making significant decisions.

“‘The sale of a small business, for example, can be structured to make maximum use of tax benefits

- = but you usually can’t get these

benefits retroactively.”’

Travers said the average Cana- dian family could save consider- able tax through income-splitting (another strategy we'll be review- ing in this series).

Levine encouraged people to question Revenue Canada’s assessments and reassessments.

“I’m amazed by the number of

CANCELLATION AND RESCHEDULE OF ANNUAL GENERAL MEETING

Due to the current labour dispute the Annual General Meeting of the North and West Vancouver Hospital Society originally slated for Wednesday, June 28, 1989 has been rescheduled for WEDNESDAY, SEPTEMBER 27, 1989.

Nominees to the Board of Directors may still be heard on a special presenta- tion by Shaw Cable on Friday, June 23 at 6:30 p.m., Sunday, June 25 at 10:00 p.m., and Tuesday, June 27 at 10:30 p.m.

- Areminder will be mailed to all those members in good standing prior to the September 27, 1989 date.

R.J. Smith Secretary

people who pay on the assumption that the tax department is always right,’ she said. ‘Revenue Canada is not always right.”’

And speaking of Revenue

tor think of all this?

Maria Reale,. Vancouver. public affairs officer, walked a fine line in her reply. After al, while Reve-

See Taxman

Canada, what does the tax collec-

Page 22

permania management ine:

o A. . Strata Management Specialist -

Computerized management reportings,” ol in-house certified accountant; — -.: technical support staff. (with 20 years experience in Engineering & Construction)

The Company with a difference when it - comes to maintenance and repairs.

Telephone 926-3802

Advertising Consuttant

Carr ing on. the eno vi or ‘trade.

é

he North Shore News recently t received " three publishing awards~. at “the: mame SNA convention. - The - “SNA: > (Suburban Newspapers of America) is is an 1100 member organization. : woo

Cheryl Carter was awarded Ist t place in: the BEST SHOPPING CENTRE PROMOTION for her Park Royal advertising. feature. Trixi Agrios - took 2nd place for the BEST USE OF COLOR on : an advertising feature she undertook for Lonsdale

Trixi Agrios ; _ Advertising Consultant ._

"Quay.

The NEWS Display Departmnent was . also awarded 3rd. place for last year’s ‘The North>..: Shore - So Much More” feature. The North.Shore-. © News has now received more than 70 publishing °:-- awards in‘national and international competitions:

Advertising Director, Linda Stewart,‘ offers congratulations to Cheryl, Trixi and the entire Display Department for their achievements: and extends many thanks for that extra effort. -

THE VOICE OF NORTH AND WEST VANCOUVER |

A STRONG Pas’ Te. ASTRONG PRESENCE