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4 Scugog Citizen -- Tuesday, February 6, 1996 by: H&R Block RRSPs, - the ideal way to provide for your retire- ment and at the same time save on your income tax. But are you taking full advantage of your RRSP contribution? RRSP contributions can be used as a means to future income splitting between spouses as well as income averaging and maximizing your return on investment. This is the first of three articles to help you make the right decisions at the right time. Let us consider a person with taxable income of $33,000. For every dollar over $29,590. tax is payable at a rate of 41.86%. If $2,500. is invested in a RRSP, the tax saving is $1046.50. This means you now have an investment of $2,500. that has 'cost you $1,453.50. This investment . will grow faster than other bank accounts as the interest is sheltered from tax and being re-invested on an on going basis, so there is mone money available each\ year to make money. In\order to take advantage) of the change in the tax rate from 27.37% to 41.86%, in this scenario one not reduce taxable income to less than $29,590. PENNY & ASSOC. ACCOUNTING SERVICES Betty Penny. Principal Accountant © Computerized Accounting T Quickbooks & Lotus) Patrick Fortune, Assoc: Accountant *@ Management Consulting 180 MARY ST, PORT PERRY ONTARIO L9L1C4 Phone (905) 985-0712 Toll Free 1-800-699-6190 Fax (905) 985-9461 © Port-time Controbership ® Personal & Corporate Taxes ® Temporary Bookkeepers © Naw Business Sefups ® Mobile Service +@ Competitive Rates Is Preparing Your 'Tax Return a Hassle? Come to H&R Block. We'll get you the maximum refund you're entitled to. Because it's Jour mony. "HsR HaR BLOCK 174 PERRY ST., OF -1:1-1 7 PORT PERRY 9803 In a year of unusually high income, possibly due to a bonus or retiring allowance etc., consider maximizing your RRSP contribution to save tax at the high rate payable for that year. It can then be drawn-out as early asgh months if necessary' when ones taxable income is back down to normal and is being taxéd at a lower rate. In this way income can be 'averaged' over two or more years which will result in less of that bonus forthe tax man and more for you. Next week's article § is on spousal contributions as a way of income splitting. (This article was submitted by H&R Block, Port Pan ) GTA - by Paul Pagnuélo The Harris government will be making a 'golden' mistake if it accepts the GTA Task = "Force's recommendations for Actual Value assessment, and a single regional government = for thy Greater Toronto area. [/ That's nog to say that there's no heed to reform municipal government structures and property taxation throughout Ont- ario. Major reform is long overdue and necessary. But in overhauling the system, let's make sure we get the right fix instead of making an already bad situation.even worse. Van Camp & Keller CHARTERED ACCOUNTANTS Income Tax Planning & Return Preparation * Personal Tax Returns Electronically Filed Preparation of Ggvernment Returns (T4's, 15s). Financial. Estate and Retirement Planning HW INDIVIDUALS lB CORPORATIONS HW SMALL BUSINESSES BH FARMS 204 Casimir Street, Port Perry Telephone (905) 985-9725 Toll Free 1-800-215-3852 OMAFRA offers business strategy for Durham farmers by: Joel" Bagg, Ag. Rep. OMAFRA These are rapidly changing times in agriculture. It is increasingly difficult to make a profit farming. Changes in technology, trade, marketing and the world economy make the industry very volatile. You have to be a good manager to survive, and even better to experience some growth. A business approach is essential. The first step in developing a shiceessful strategy is to analyze your farm business. Many of the successful " farm business in Durham Region are participating in the Ontario Farm Management Analysis Project, offered by the Ontario Ministry of Agriculture, Food & Rural Affairs. This will provide an in depth look at business performance of your farm. It will help answer questions such as "What is my cost of production?...Where can I cut.costs?...How do I compare to, everyone else?...How much debt can I handle?...Is there room to bring my son or daughter = into the business?". Information provided is strictly confidential. We will help you prepare an accrual statement, a balance sheet, crop acres and yield summary and a summary of sources and income' uses of cash. A computer program calculates. costs, returns, trend analysis, financial indicators, etc. This information is a valuable tool in making farm decisions. Summaries are available for Durham 'Region and the province. These can be useful in determining how competitive you are in the industry. If you are interested in participating or would like more information, contact the Ontario Ministry of Agriculture, Food & Rural Affairs's office in Port' Perry at: (905) 985-2003 or 1-800- 263-8028" or fax (908) 985-9599. a golden mistake The Task Force's recommendations run contrary to the inter- national trend in public opinion and the consistent méssage we've been, Hearing from "Ontario homeowners and busi- nesses. Reform must result in smaller governfnent. Not a smaller number of governments 'as Anne Golden, Chair of the Task Force has recommended. The characterization by the Golden Task Force that a new GTA regional government would mean "less government" because it replaces the area's five regional governments is ridiculous. The proposed GTA regional government will dilute democratic control of government by citizens, increase the power of special interests, and provide economies of scale to public sector unions. A GTA government will be more costly, leading to higher taxes. And it will retard seryice quality, make the "GTA less competitive, and will stifle innovation. { Rather thhn regional consolidation, the province should eliminate the upper tier level of municipal government altogether, and repatriate respon- sibilities to local municipal councils and the province. The trend in government globally is toward decentralization, not consolidation. London and Copenhagen have dis- mantled their regional governments and. regional government is the exception rather than the rule in the developed world. Also flawed is the Task Force's proposal that property taxes be determined using a system which reassesses market values annually. Market value is a flashpoint with taxpayers because it is costly, discriminatory, regressive and 'unfair. Market value is no reflection of the ability of a homeowner or business to pay or the amount of services used. y If Harris wants to save big bucks and at the same time bring in a new system which is easy to under- stand, easy to administer, fairly distributed, trans- parent, and' more closely related to the cost of services used"by each property and class, what the province should be moving to is the Unit Assessment system based on square footage of the building 'and lot size. Different mill rates would be applied to both, with further distinctions for usage. Premier Harris and Municipal Affairs M inister Al Leach will be ignoring the demands of provincidl taxpayers for" less government and tax fairness, if the government moves ahead with the recommendations of the Golden Task Force. The route the province should be taking is clear, The decision the government must make is whether it listens to taxpayers or the Golden Task Force and other advocates of bigger and more costly government. ("Let's Talk Taxes" is a feature service of the Ontario Taxpayers ' Federation.) SHEPHERD & POWELL Hm Chartered Accountants Bm Accounting, Income Tax, Financial Planning & Consulting Services - geared fo SMALL BUSINESS m FARMS B INDIVIDUALS TAX RETURNS PREPARED FREE INITIAL CONSULTATION Personal Income Tax Return Preparation 'E-Filing' at No Extra Charge Ey ". Assistance in filing Government Forms ond Rgturns New Business Planning and Startup Experienced, Courteous Staff Evening and Weekend Appointments available Personal, Confidential Service + DAVID R. POWELL, 8.comm., MBA. CA. | 250 Queen Street, Port Perry. 985-9791 (Next fo the Big 'V")