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iT aL , Page. 12 Halton Hills This Week, Saturday, nr 17, aoe BusinesS LIFE, AUTO, HOME, RRSP 4) E DAVIDR: WALSH” "> 232A Guelph St., Suite 204 873-1643 Toll Free 1-800-387-9974 rs Paper Factory -DON'TMISS OUR. INVENTORY CLEARANCE BONANZA 25° - *5.00 (Regular $2.95 - $15.00) GREAT SAVINGS - LOTS OF FUN! 2 MOUNTAINVIEW RD. S.. Our Georgetown Location Lucky winners of a Frigidaire Freezer from M&M Meats, 211 Guelph St., Georgetown, were Ashok and Angela Venkatarangam and their children, Geoffrey, Kristina and Kaitlyn off 55 Wylie Circle in Georgetown. Pictured with the happy ety are M&M Meats Product Consultant Clarissa Salinas and Fran Walton. [TW photo Black market renovation increases red ink GEORGETOWN 873-7403 Massive black market renovation activity is caus- ing the federal government to lose vast amounts of both sales and income tax rev- ICUTIT OUT: IHALTON HILLS! if your definition of value is quality, “convenience, service and a fair price, First Choice Haircutters is for you. pe Styles. KidsCuts. Perms. Colors. Now you can afford professional haircare: Now, you have a choice. You’re Paying Too Much for Haircare 1 Mountainview Rd. N. Georgetown 873-1339 OUR: | WZ i | | Monday — Friday 9-9 Saturday8-5 Sunday 12-5 enue, according to Terry Mills, a member of the Greater Toronto Home Builders’ Association (GTHBA) Renovation & Redevelopment Council. Ontario residents are expected to spend $6.7 bil- lion on renovations this year. According to the Winter 1992/93 Pulse Survey con- ducted by the Canadian Home Builders’ Association, builders in Ontario believe that since the introduction of the GST, the amount of renovation work undertaken on the black market is roughly 45 per cent — nearly half of all renovation activity. In-1990 it was believed vation before the introduc- tion of the GST, the govern- ment would lose $2,400 in tax revenue loss climbs.to 820. The GTHBA is calling for - the federal government to consider the following two initiatives: 1). Allow greater flexibil- ity in the definition of sub- stantial renovations for the purposes of the GST rebates — at present, renovations are fully taxable by the GST except for a very few which qualify under the very restrictive definition of “substantial renovations”. This has resulted in a reduc- tion in renova- that 25 per Federal tion work and cent of renova- a significant tion work was government increase in the perrorm<¢ asked to consider. share of reno- using cash type transac- tions. “Black market activity presents many problems for homeowners,” said Mills, a partner in Toronto-based Chizen & Mills, a renova- tion company. “On the surface, while cash-type transactions might appear to offer big savings to the homeowner, there is typically no contract and no warranty between the cus- tomer and the renovator. This leaves the customer wide open to problems if the renovator does not per- form properly or worse, takes off with the money,” he said. ton Research report, The Effect of the GST on Black Market Renovations, concluded that “the GST makes it poten- tially even more profitable to undertake renovation work on the black market.” The report found that for a $10,000 black market reno- initiatives on a cash basis. A rebate of the GST paid on renovation jobs of $10,000 or more would provide a strong stimulus to professional ren- ovation activity and should lead to increased govern- ment income tax revenues. 2) Expand the RRSP Home buyers’ Plan to include major renovations — allowing homeowners to access RRSP funds in undertaking major renova- tions would provide a sig- nificant boost to the build- ing industry. At present, many homeowners have substantial RRSP holdings but insufficient available funds to finance required renovation work on their homes. Expansion of the current Plan to allow the use of RRSP funds in major renovations of $10,000 or more would assist both these homeowners and the renovation industry.