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20 The Canadian Statesman, Bowmanville, Wednesday, May 18,1994 Section Two Ribbon Cutting Opens Nanny and Companion Service Congratulations are in order for who, along with his staff, is celebrat- local business man, Tom Cowan, ing the 25th Anniversary of Cowan DISCOUNTS FOR DOUBLE rwrrrar? Liberty Mutual Insurance Company 68 King St. E., Bowmanville, Ontario L1C 3X2 623-8914 Insure two or more cars with Liberty Mutual and we'll reduce your rates. Call us today for more information. LIBERTY MUTUAL © 1994 Liberty Mutual Insurance Group/Unionville, Ontario ARE YOU TIRED OF PAYING TAXES? Call Me about the C.I. SECTOR HJhin You don't need to win the Lottery, you need to keep more of what you make. The Cl SECTOR FUND allows you to invest in Canadian and Global Mutual Funds while DEFERRING TAX on Capital Gains. REGAL CAPITAL PLANNERS LTD. Call Steve Scatterty Financial Advisor, Bowmanville 623-1936 THE AVERAGE TAX RETURN FOR 1993 WAS *900.00 © Pontiac-Buick Limited in Bowmanville. Bowmanville. Tom was bom and raised in Bowmanville, Bowmanville, having attended Bowmanville Bowmanville High School where he excelled in hockey, football, and track and field. During W.W. II Tom joined the Royal Canadian Navy serving on the tribal class destroyer, H.M.C.S. Huron Huron and was involved in naval action in Russia and the English Channel. Tran began his entrepreneurial career career in the restaurant business having owned and operated the original Olympia restaurant in downtown Bowmanville with his lovely wife, Vivian. challenge for. Tom came along when he purchased In April 1969, Tom purchased the former Robson Motors and Cowan Pontiac-Buick Limited^ was formed. the farm implement store on Kmg St. E. Tom successfully operated this International International Harvester franchise, selling selling and servicing farm equipment and International trucks. In April 1969 Tom purchased the former Robson Motors and Cowan Pontiac-Buick Limited was formed. Tom actively participated within the community in various charitable • associations - sponsor to hockey and baseball teams, member of various business committees. . His most important and meaningful meaningful civic achievements have been in the health field, serving as: Chairman of the Board of Memorial Hospital, Chairman of the Memorial Hospital Foundation, chairman of the Newcastle Newcastle Multicare Inc. and the Durham Region District Health Council. Tom is presently serving as a member of the Board of Directors and as Treasurer of Bowmanville Memorial Hospital, is a member of the Board of Governors and chairman of Finance at Oshawa General Hospital. Hospital. Tom was the 1st Chairman of tihe Board of St. Joseph's Separate School, served as President of the Rotary Club of Bowmanville, Director Director of Kinsmen Club "K40", and Chairman of Central Ontario General Motors Dealers Association. All of the activities emulate Tom's outlook on life and business - "Get Involved". Old fashioned hospitality, old fashioned courtesy, and an old fashioned fashioned outlook on community life have proved to be the best way to conduct business for the owner and staff of Cowan Pontiac-Buick Limited. Limited. While Tom suggests that Bowmanville Bowmanville has been good for him, it is obvious through his community involvement involvement that Tom has been good for Bowmanville! Congratulations, Tom Cowan and Cowan Pontiac Buick Limited, BUSINESS and FINANCE Durham East MPP Gord Mills had the honor last Friday, May 13th, of cutting the ceremonial ribbon to mark the Grand Opening of Generations, a business which will provide full or part-time nannies for children and companions for the elderly. Partners Melissa Vanden Heuvel (left) and Louise Homigold expect to draw clients from Whitby to Cobourg. The new business is located at 214 King St. E„ in Bowmanville. Bowmanville. Cowan Pontiac Marks 25th Year As the result of information received received from the Public the Durham Regional Police Service have made a number of Arrests and issued Arrest Warrants for others. Recently, a 15-year-old girl was charged with passing counterfeit American bills at two businesses in Oshawa. When searched, she was found to be in possession of eleven more Counterfeit bills: A second female female young offender was identified and a Warrant has been issued for her arrest for passing counterfeit American American $20.00 bills. Again, as the result of information received by the Major Fraud Unit of the Durham Regional Police, a search warrant was executed at a Simcoe Street South address and 33 American American $20.00 counterfeit notes were located. located. Another youthful offender was arrested at the scene and, as the result of an investigation, a warrant has been issued for a 40-year-old man. by Brian Costello WHAT TO DO AFTER COURT RULING ON CHILD SUPPORT You can be sure that the midnight oil is burning in Ottawa as they try to figure out what to do with child support payments now the Court of Appeal has ruled they are not taxable. We, though', have some pretty simple things to do. They should be done immediately. Let's look back on the case for a minute before we decide what to do. While governments can set the law, the courts and jurors effectively determine what we the public want. Unless Ottawa appeals, the net result would be that parents (usually husbands) who pay support would get it as a tax deduction. Parents (usually mothers) who receive it would pay no tax on it. Révenue Canada doesn't like the idea as it would cost them too much tax revenue. Happily married couples wouldn't like it either. Not getting similar treatment they might as well divorce, but live under the samp roof. Revenue Canada wouldn't like that either. The end result is that changes have to be made one way or the other. The most likely change will be for Ottawa to change the rules so child support payments are neither tax deductible nor taxable. That will end the oontrovorcy oxeopt tho naxt argument will undoubtedly bé from spouses who pay alimony. Should it be treated in a like manner? r Mathematically speaking it would be better for Ottawa to change the law so there were no tax deductions or taxable income. They would save money. For example, if a husband in a high tax bracket pays $1, 000 a month, Revenue Canada picks up $500 or so of the cost. If the receiving spouse is in the 30% tax bracket she will pay $300 tax. Ottawa absorbs $200. Change the rule and Ottawa saves hundreds of millions. The drawback, of course, is that there will be huge line ups as husbands try to get their agreements reduced if they aren't tax deductible. In the end result, it could well be the lower income spouses who are hurt. They will receive less money. They would have had more left dver after doing a little tax planning and paying tax on the rest. So, the options are for Ottawa to appeal. They probably will to buy some time. It will create some heat, even inside the Liberals, as there is a private member's bill in the works right now which addresses this issue. Another option is to accept the court decision. But, all hell would break out. The third option is to change the law. I expect they will appeal just if only to buy some time. But, even if they buy some time we should be doing some things right away to take advantage and protect ourselves from coming changes. This case dates back to 1989. If you have been appealing your assessments each year based on the case, you can now ask for the return of your money back to 1989 plus interest. If you haven't been appealing, you might want to write or call Revenue Canada under their tax fairness program. You are allowed to request that any returns dating back to 1985 be re-opened. I doubt the response will be favorable. However, if each of the hundreds of thousands of taxpayers involved wrote it could have a united affect. The sure route is to ask that the income reported on your most recent return be re-assessed. You should write right away telling Revenue Canada that the terms of this case mean the child support payments you received are actually tax free and should not have been reported on your return. You have lots of time to do it but the sooner you get it in the better. If you are paying quarterly installments you may also want to adjust them lower. But, don't spend the money as an appeal may be successful. If you contribute to your RRSP, it's based on last year's earned income. You should be talking to your financial planner about whether you have over contributed. Those who presently pay child support should be talking to their lawyers (the real winners in this change) to see what impact it has on them. Many lawyers negotiate a child support number and then gross it up based on the recipient's tax situation. You might be able to ask for a reduction in your payments, now, or in the future. If you are about to enter into an agreement make sure all bases are covered. The most important element is the child or children. However, if you agree to pay $1,000 tax deductible and they change the law next year so it isn't tax deductible you will want the leeway to change your agreement. You also may want to talk to your lawyer about the merits of accelerating payments before year end while they are still tax deductible. , Oh, it's a great day for the legal profession.