HomeMy WebLinkAboutThe Wingham Advance-Times, 1989-05-09, Page 32Qd
Page 12B o The Wingham Advance -Times, gay 9,1 989
f
MANAGING Y
By Harry L. Mardon
1 : r �f
IFr,G''G rrf� rG•
It's never too early for taxpayers
to adopt strategies which will save
them from paying too much income
tax.
Of course, those early birds who
have already filed their 1988
income tax returns are in the best
position to now turn their attention
to 1989 tax -saving actions. Those
who don't send in their tax returns
until the end of April are probably
too engrossed right now to give
much thought to preparing for the
current taxation year.
The importance of minimizing
your taxes cannot be over empha-
sized. For most of us, taxes are the
largest single drain on our income.
Many of us pay far more tax than
we are legally obliged to pay,
according to professional financial
planners and consultants. It need
not be that way. Most wealthy
Canadians are canny enough to use
the services of professional accoun- h
tants and lawyers specializing in
tax matters. Often, the tax savings
they make far exceed the cost of the
professional consulting fees, or
The best route for middle-income is
Canadians to take is to seek out the in
advice of professional financial tax
planners. Some may charge a con- su
suiting fee while others who_ are Fin
associated with financial services of
companies charge no fee their
income coming from sales commis- P
sions generated when they get their an si
clients .to purchase suitable finan-
cial products. is
Wlomever you use, your objec- c
111
tive must be to do all you can to d
avoid, postpone or eliminate taxes
you would otherwise pay. (Note of
si
that tax avoidance is perfectly legit -
i
imate; it is tax evasion Which is isle= w
gal. Make sure you understand the
difference.)
li
Although the federal govern-
ment's so-called Tax Reform has PI
eliminated many tax -saving hi
devices, there are still a good num-
ber of ways you can pare your taxes to
:. re , . ? :.: 0 a:al 7',X 4:Z4P4,40Affr
UR MONEY
to the bone. And what you gain can
make a lot of difference to your
standard of living, and the amount
of money you accumulate for your
retirement years.
Here are a number of ways to
reduce your 19x'' tax liability:
—Invest the family allowance
payments for your children. It is
very tempting to just cash the
"baby bonus" cheque and spend
the money. However, income
earned from family allowance pay-
ments invested for the benefit of4a
child does not attribute to the par-
ent. It is important that you keep
this capital separate from your
ow, if you wish to avoid the attri-
9ution rules. Establish the invest-
ment plan or bank account in the
child's name° Over a period of time,
the child's account will grow to a
very respectable size while not
affecting the dependant claim of
is/her supporting parent (except
for Quebec).
-Make a gift to children 18 years
older. The reason is that if a child
18 years of age or over in 1989,
come generated from a gift is
ed in the child's hands. It is not
bject to the attribution rule.
ancial planners point out a gift
money to be used for investment
urposes to a child aged 18 or over
d in university, can give rise to a
gnificant income tax saving, but it
important to note that the money
ust be gifted Outright to the adult
hild, in order to accomplish the
esired income splitting. The size
the gift required to accomplish a
gnificant level of income split
th,.an adult child may discourage
you f bin `Ali We'd 'ot tax strategy If
so, a viable alternative is to estab-
sph a Registered Education Savings
an. Income paid out of the RESP
help the young adult to further
s or her post -secondary education
'11 be taxed in his hands at his
wer tax rate.
,Ent: agfr
dx.11fG,''' Si :iF. r 6 9 cs
—Invest now in a Registered
Retirement Savings Plan° Too many
people postpone until the RRSP
annual deadline (which is the end
of February 1990) making their
1989 RRSP contribution. This is a
big mistake because by leaving the
capital outside the RRSP, it gener-
ates taxable income during 1989.
Mr. . Mardon is manager of corpo-
rate communications for Investors
Group Inc., the Winnipeg -based
financial planning services compa-
ny.
Town puts hold
on industrial
park land sale
The Town of Wingham has put a
temporary hold on any future land
sales in its industrial park in the
north end°
At its regular May meeting, town
council approved a works commit-
tee recommendation to defer any
future land sales until the servicing
is complete and the final cost for
providing that servicing is known.
Reeve Bruce 'Machan, works
committee chairman, told council
that exact costs must be known in
order to establish the selling price
for the industrial lots.
_He said lie" expects the work to
take another six to eight weeks "at
the very latest".
The Canadian
Red Cross Society
TERRY .ANGER, a member of the Wingham Optimist Club,
the job of inscribing numbers on children's bicycles at last Satur-
day's annual bike rodeo. Danielle Wagar stands by patiently as he
works on her bicycle.
had
1
: b..G,:avi,::
ZONE PARADE - Members of the Royal Canadian Legion attended a zone convention parade Sun-
day at Wroxeter.
GIVE PRICES THE BOOT!!
PLAYOFF CHAMPS—The Grapes were the Bantam playoff
champions in the Wingham Youth Bowling Council league this
year., Team members include: back, Steven Mowbray, D. J. Morri-
son; front, Murray Steffen, John Clugston.
•D.0
LARGE LIQUIDATION SALE CONTINUES AT THE
North End
of Wingham WINGHAM SALES ARENA 3574730
1