oe, on " capital gains | * Plans to eut back on capital gains exemptions were announced in the original tax reform White Paper in mid-1987 and they survived all sub- sequent second-thought processes, ~ Now they’ re taking effect. - - The personal lifetime exemption of $500,000 instituted in 1985 has now been slashed to only $100,000, although the original ceiling remains for shares in private com: panics and farms. 1988 and 1989, two-thirds of eligible assets will be taxed in each year. Then for 1990 and tatcr, the _ fate will go up to 75 per cent. So. the new position is that while personal Lax rates are now lower for most.people, you'll have to pay on So you'’re.one of ‘the lucky ones. and you know you don’t owe the - taxman a nickel for 1988? Should you file a return anyway? ‘Certainly, if you do owe Revenue Canada money for 1988, the law says you must file arcturn and pay up by April 30, 1989. If f you don’t, _ ae ndustrial oo . There are many ways to invest ~ up: a record of performance, When it comes to RRSP investing, one word says it RRSP dollars. “and each RRSP alternative claims It’s the best — But none of these claims hold water unless one thing is there to back them There are many things we could say to attempt to establish the credentials . + of The al om Pas . that we manage mor¢ than $7 billion for. ‘capital gains when yo SCs: $100,000. ae Two-thirds =~ _ taxable — This ycar and next 66 6 per cent” "of capital gains you achicve: over | $100,00 will-be taxable and:there’s |}. _not too. much you can doaboutitex- | "cept pay up withasmile,:" If -you Aaven't reached: the ~ $100,00 limit, however, remember, . that capital gains realized within © - Tax for 1987 was 50 per cent of the appropriate personal rate. onthe: taxable portion that yedr, Now, for your RRSPcannot be exempted and you’re building up potentially. tax~ | able capital: asscis., ¢ So you're usually better ‘olf 10. place. only interest-bearing: invest- - ‘ments in your RRSP and to invest — -in stocks and bonds only outside the ‘shelicr. That’s because under the - $100,000 ceiling any capital gains you make are exempt anyway. you'll have to pay a late-filing penalty of 5 per cent on the amount “unpaid, plus an additional penalty - . for cach extra month from then on. You'll also have to pay interest on the unremiticd amount. But-to come back to the question, must you file a “ail” retum if you all. for one reason or another. - _ more tan 609000 Canaan invests. hat we prs ot ut never at ~~ the expense of consistency ... an our record of antic ents eee ernket has been excellent. : "em But only hard numbers count. And we urge you to make your RRSP decision on the strength of ‘comparison of results, " Hereare ours: Ayn | dye] Sye | l0yr| 20 yr. Industrial Growth Fund 20,5%| 11.2%] 13.0%] 16.7%] 16.2% coupon below. Today! ~” Bor more information on this and other ex contact an independent investment fund C.G. “Bud"’ Hallock Great Pacific Management Co. Led. 5133 Agar Avenue Terrace, B.C. V8G 1H9 35-4273 oO I've seen your results, pease send mea fl package of information on exceptlonal RRSPeligible investments, er or stockbroker, or return the Wp . 1001G7| GF SN ore! | ‘Federal personal income tax ogee : eae ce fo -3,000 - . — ns —— | a 1988 "1989" . 990" ber ot W092" at Tax year’ . : | RRSP investing — including performance comparisons. j NAME: {| m ONCE LOH |: Ls | . Mail tet INSERT DEALER NAME AND ADDRESS HERE The industrial Group of Funds BE Manayged by Mackenzie Financial Corporation BED) including reinvestment of dividends All flores to December 1, 1988 are average annual nd returns based on the net income invested and Past performance is not necessarily indicative off future results: Any offers made onty contains complete details of all charges. Please read it before making a purchase and * —oe eee Oe eee eee eee retain it for fulure reference, result of tax.reform. File a tax return even if you don’t owe for ’88 | ae don’towe anything? The? answer is. a definite “yes” if you have made a capital { gain in the year, even if the capital gains; excinption. ceiling means it’s non-taxable. “ _ The answer is also ‘ ‘yes” in-other cascs loo — — because it’s definitely in your interest to file so as to be cligible for various credils you may have overlooked. More important — there’ sno way you'll get a refund on any overpay- ment if you don’ task for it by way of your return. . : Nor will the. government pay you . “interest on the refund if you don’t file by the April: :30- deadline; unless” _ the taxmen admit they were tardy in _ processing your assessment. Finally, if you're very late in claiming your refund — like over three years late — you'd better for- get it, There’s no. requirement lo pay you if you leave it as long as that. , So — whether or not you have a refund coming, file a return anyway - and ‘be glad you *re in the “home free” minority this lime around. These are 1987 estimates bye the Finance. Department to show who pays more and’ W ho | pays: ies as a. : on ao Revenue Canada > ‘is clamping down on income splitting | Revenue Canida-is busy revising the rules regarding income-splitting - devices whereby taxpayers ¢n- deavor to divert income to lower-in- come family members, usually spouses and children over 18. Income camed by minor children is currently attributed. back to parents or grandparents, where it can be demonstrated it came. from that. source. ‘However, income -eamed. by. children over 18 has es- .. caped the new rule so:far. But Revenue Canada now plans to at-. tribute such income where tax- planning is the reason for the trans- action. . The new regulations will cover loans to individuals but will not cover property transferred outright. Some trusts already in Place may also be affected. However, the ncw regulations. don’t appear to cover legitimate salaries paid to family members for legitimate services for a family company. Many. spouses and adult children do, in fact, carry out these duties, especially as summer. work " for the family: business, Established legitimacy With this is mind, it’s important that the “is are dotted and the “t's. _ crossed. on legitimate incr-family: : transactions.,For example: © 4. Make full use’of ‘statutory in-- come-splitting devices such, as. spousal RRSPs. “°2.Tn Family enterprises, cnsure - “that adult children-and spouses in-; -yest-with their own funds, especial~ Jy in tow capital ventures. 3. Segregate investment funds.. For example, the wife's inheritance can clearly be earmarked .as: being an investment fund enabling-her to. 9 =! 7" _ participate in abusiness enterprise... - Wemightalso be a-good idea for the OS higher-income. spouse to mect’... -monthly expenses, thus justifying... the ability of the lower-income — spouse to accumulate. ‘investment: os capital. (Bank of Montreal —I independent Busin as Review) - Some Canadians don'thavethe | to stomach forhigh- riskinvestments.. a ie te! ees oo Ty of Neither do we. High-risk investing demands nerves of steel. he fl monetonous an unewordg, rs rn Qne moment you're inching towards the Over forty-five years of experience givesus Joe summit of great riches. The next moment your eyes an edge in in spotting financial forouww Je are closed and your heart is in.your mouth, Cllents. Which is why for several years running, mL We prefer the middle road The Investors Srcers has managed fonds that have climbed to | approach may lack the thrills and chills, but the - _ the top ranks of investment funds in Canada results are just as exciting. _.- Evenion the middle road to financial peace First we start with a complete analysis of your _of mind, we occasionally fly. present needs and resources: Then together we | establish specie nancial goals aly we custom : investors os between NESTE cpt ont me Group C.J. (Cliff) Me McChesney | | _ This 6 not to say that the road you take wil _PROFTT FROM OUR EXPERIENCE RE. on a eentley ! ° A MEMBER OF THE POWER FINANCIAL GROUP OF COMPANIES. ;