HomeMy WebLinkAboutThe Huron Expositor, 1983-09-07, Page 15A14 -- THE 'HURON EXPOSITOR, SEPTEMBER 7, 1983
t f"• tr
UNICEF Ontario needs
'your ISeliS- now to launch tt-'.
1963 fpndrisinngg rogratns.i
The 'annnaa, UNIC . p : Flail.-
we'ett and. Greet n��g Card'
campaigns.•`°which ate' now in -
full swing, require. manY•
volunteers to perform the
orations tasks neee.5aty' to."
meet .the ev r;fncreasing
needs' of children in the
developing world:
Funds raised by UNISEF` •
provide children. In over 110'
countries with 'programs io
unproved health Gare,. nutri-
tion, educations •safe, water
anis sanitation. You'can help
UNICEF help these children -
by contactinflUNICEF Ontar-
io now,ait:1992 Yopgq_Street,
Suite M4S 1Z7. Tel: (416) Toronto,87.4153.
44444.4+
This year, special UNICEF
ambassador Andrea Martin -
known to North American
television viewers for her
many roles on SCTV - has
joined UNICEF volunteers
across Ontario who donate
their time and talents to
support UNICEF's Hallo,
we'en and Greeting Card
fundraising campaigns. The
campaigns fund long-term
programs In health-care, nu-
trition, education, safe water
and sanitation for children
who desperately need this
help in over 110 countries in
Africa, Asia and Latin Amer-
ica.
UNICEF Ontario needs
• your help too. Join the
expanding team of volunteers
•
Ifit's„,
from
4nstett's
it says,
`you're
special'
PRIV
working for UNICEF's child-
ren during , this fall's vital
fundraising campaigns. CuII
or write for further informa-
tion to: UNICEF Ontario,
1992 Yonge Street, Suite 204,
Toronto, Ontario M4S 1Z7.
Tel: (416) 487-4153.
toan
'stheicey
avoidinghightaxes
xt>
DISPLAY
YOUR LONE
ON HER FINGER
The diamond engagement ring you select for
your bride will be a daily reminder of your deep
love. This is a purchase you should consider
carefully because it's meant to last a lifetime:
Consult us before making your final decision.
We're American Gem Society jewelers...
dedicated to consumer protection
and fine service.; •
LEAGUES STARTING NOW
DON'T MISS OUT
OPEN BOWLING: Friday Night
Saturday Night & Sunday Afternoon
FREE GAMES FOR NEW BOWLERS
and we'll help you.
527-0840
NOBEL LANES
BY BMW >G. MARDON
The most effective way to reduce your
family's income tax load is for the spouse in
the higher tax bracket to transfer investment
income to the spouse in the lower bracket.
This can be done on a tax-free basis by
means generally the husf a band; provides his spoususal loin. The e
with cash so that she can invest the money
into a sound investment opportunity. The
wife will then take into her income the fruits
of the investment.
However, in exchange she {rust provide
her husband with a Promissory Note which
clearly acknowledges the debt to her spouse.
Without that note Revenue Canada will
consider the transfer of money to be a gift,
and the Income Attribution Rules will apply
and the benefit of income splitting will be
lost.
So, the key to avoiding tax is have the
transaction'between the spouses in the form
of a loan. The reason that a loan is used is
that the courts have determined that a loan
is not a gift transfer, and therefore the
income attribution rules do not apply.
The note that establishes it is a; loan
transaction usually is in the form of a
non-interest bearing promissory note pay-
able on demand, or . a time period 'after
demand. If the note is properly drawn up,
the income earned on the investment of the
loan proceeds by the wife will be taxable in
her hands, not in the lender's hands. An
income split has been successfully accomp-
lished. 4
It isn't necessary to use a lawyer to draw
up the promissory note, sometimes referred
to as a demand note. The document merely
ha. to .tate that the harrower nromises to
repay the sum of money borrowed (stating
the dollar amount) upon demand by the
lender, after a specified grace period. The
note should also contain a sentence whicly
states that if a demand for repayment is not
met; interest at a given percentage rate will
start to accrue from the date of such a
demand. -
The note has to be signed by,the borrower
and also have the signature of a.witness. As
well, it should be dated and include the city,
town or village where th couple reside. In
the case of farm• families, the placename
would be the nearest community.
Professional financial planners say that
the best evidence that there is a genuine
loan is actual repayment. A common practice
is for the wife to have a bank account in her
name only, and to deposit in it the income
she obtains from the investment financed by
the loan. She then makes periodic payments
from that income to her husband, with the
payments notated on the back of, the
promissory note, with dates.
It is important to remember -that some
payment or acknowledgement of the debt is
needed at least every six years or the
demand note will become legally unenforce-
able and thus Revenue Canada's income
attribution rules will apply to the lender.
The courts have been favourably disposed.,
to permitting reasonably documented in-
come splits, so as long as you take some care.
you should be able to achieve your tax
planning objectives in this area.
(Mr. Mardon is manager of corporate
communications for The Investors Group,
the Winnipeg -based financial planning
services company.) •
ti
"fi t - t. NI,
"Cherie" - $400. set L "Elegance" $725. set "My Love" - $650. set
The Perfect Pair...matched Diamond
Engagement Ring and Diamond Wedding Band
Sets...set in 14 karat gold
CO.OP
Now available in eight styles, three ore photographed obove.
6 Albert Street, Clinton
26 Main Street South. Seaforth
264 Main Street, Exeter
203 Durham Street East;, Walkerton
135 Oueee Street East; St. Marys
NSTETT
mAKE ESSINTEICT C0 -0P
DISTRIBUTOR
for
JEWELLER....
MEMBER AMERICAN
GEM SOCIETY
RO
E
5% i.w• .wr.•:
Hi and Goodbye!
The Huron Expositor
is pleased to announce
the appointment of
Katie O'°Leary
as advertising sales representative.
Katie joins Ron Groulx
on the Expositor ad team
and they both look forward
to assisting Seaforth,
Brussels and area merchants
with their advertising needs.
KATIE O'LEARY
GOODBYE SEAFORTH
AND BRUSSELS!
1 am going back to school to complete my
course in Creative Advertising at
Algonquin College in Ottawa.
1 would like to thank all the area merchants
for being so friendly and helpful -
it's been a pleasure doing business with you!
I'd also like to say a special thank you
to the staff at the Expositor.
Their support and encouragement
is much appreciated!
Pictured with the 7600 gallon delivery truck are
Butch Desjardine, Propane Manager and Bob Oesch, Driver
PROPANE DELIVERY
• Farm Drying FOR • Carburation
• Home & Farm Building Heating
• Industrial & Commercial Heating
Licensed personnel for installations
For any further information ask for
BUTCH DESJARDINE
262-3002
Everyone welcome to shop CO-OP.. Quality products ...competitivel
JANET MacDONALD
HENSALL DISTRICT CO-OPERATIVE
Hensall 262-3002
priced