OQther deductions from income include:-
4. Child care expenses (an expense which can usually
only be claimed by the mother)

5. Tuition fees to designated institutions, and student
expenses

é. Ee ge ME ea (Registered Home-Ownership Savings
Plans

7. RRSP ‘ciaaicial (Registered Retirement Savings
Plans

8 Investment income from Canadian sources (chiefly

interest from arm's length transactions anc dividends)
up to $1,000.00., and

9. An amount used to purchase an IAAC (Income Averaging
Annuity Contract). This is of great assistance when
an artist has an unusually high income in a year and
wishes to receive and pay tax on the amount over
a number of years.

Instalments: Self employed artists are required to pay

their taxes in quarterly instalments, due on March 31,

June 30, September 30, and December 31 in each year

unless:-

1. Tax ie deducted at the source from at lenst 75% of
income

2. Federal income tax does not exceed $400.00., or

3. The chief source of income is farming or fishing.

Instalments can be based on the amount of tax the
artist expects to pay for the year or the amount he paid
the previous year. Interest must be paid on any deficien-
ey of tax owed if an under-estimate is made.

Finally, the importance of keeping accurate and full
records cannot be over-emphasized. The agony and expense
of suffering and defending a prosecution launched by
Revenue Canada, when there are inadequate records, should
not be risked. The fact that a prosecution is not success-
ful, does not repay or reimburse the taxpayer in any way.
Revenue Canada goes by the exact wording of the law, not
its spirit, and the law is enforeed by people who gen-
erally have little affinity for art or knowledge of
artists' problems. Consequently, an artist should keep
rood records, and if at all possible, obtain the services
of a good accountant to assist in compiling records and
Filing tax returns.