PAGE 20, WHMTY FREE PRESS, WEDNESDAY, OCTOBER 26, 1988 WCB strategy gives better care close to home TORONTO (September 12, 1988) -- Titis faîl the Workcrs' Compensation* Board (WCB) will set into motion a stratcgy de- signed to create a unique, new cp-ordinated system of compre- l'cnsive inedical reitabilitaition services for Ontario's injured wvorkers, WCB Citainnan Robert Elgie announccd recently. TMienew system wili ensure tîtat a uniformn, high standard of mnedicai rehlabilitation -services is maintained tlîroughout ie pro- vince and tuai injurcd workers re- ceivc Utese services as close [o thecir homes and as eariy as possi- ble. 'Tihis systcm is based on pro- viding early and intensive, high quality medical and paramedical services in a local, caring envir- 1 m Rami or Shine, they put the Whitby Free Press on your doorstep every week. For more information on delivery of your flyers cati 668-6111 THIE WHITBY FREE PRESS The partners of WINTERS, SUTHERLAND & MOASE are pleased to announce the admission to partnership of John G. Patte, B.A.Sck., C.A. Over the past thirteen years, Mr. Patte has practised in the area of income taxation with particular emphasis on personal and corporate tax planning and estate and succession planning for the owner-manager. Mr. Patte wil continue his work in the area of income tax withWinters, Sutherland & Moaso. While he wiII be Iocated in the Oshawa office, Mr. Patte looks forward to asslsting clients of the Bowmanville and Port Perry offices with their incomre tax concernis and WINTERS, SUTHERLAND & MOASE is a regional firm of Chartered Accountants providing auditing, accouniting, taxation, data processing and computer consulting serv- ices to a wide range of srnall and medium sized busi- nesses in Durham Region. The firm is committed to pro- viding services of the highest quality to its personal and business clients to help themn meet the challenges of to- morrow. WINTERS, SUTHERLAND & MOASE 135 Simcoe Street North Oshawa, Ontario L1G 4S6 (416) 579-5659 Also Iocated at: 23 Silver Street Bowmanville, Ontario LiC 3C4 (416) 623-9461 238 Queen Street Port Perry, Ontario LOB iNO (416) 985-8893 onmcint," said Dr. Elgie. It is -difficuit enough when a worker is going Uirough treat- ment to heai an injury w-itiîout Uic diisruption and- inconvenience of bcing treatcd in a strangecity. [Injured workers necd family and friends nearby both toi help titemu physicaiiy and to offer support and encouragement."- The strategy for Uic ncw sys- [cmn, first proposed last Marclh and approved on Septemnber 8 by the WCB's Boardl of Directors, calîs for Uiree tiers of medical re- habilitation services t) l)eesta- blislîed: community clinies, re- gional evaluation centres and a provincial metlical rehiabilitation institute. These will operate inde- pendently from Lite Board witiî services purchased on a ec-for- service basis. The first ier, comrnunity cli- ics Uroughout Onuario, wiil pro- vide physiotherapy and other ser- vices to supplement the inedicai advice and treatment of a work- er's physician. The ciinics wiii bc available bo treat injured work- crs, referred by titeir doctor, within days of their injury anti wiil probabiy se more than 100,000 patients annualiy. Sites for Uic clinics wiil be chosen during 1989 from aînong Ontirio's Itospitals and paramedi- cal centres. The second ier, regional eval- uation centres, wiii provicle.de- iaic le vaiuations of workcrs whose recovcry is prolonged or whose rctum [o work is more dif- ficuit than usual. Thlese evalua- ions wiil confirin diagnoses, re- view past treatînent and outline future treatment for injured workers recrred to Uic centres by communtiy clinics, family physi- cians and ic WCB. The centres wili also provide consultative services 10 community clinies, participate in rescarch and dic train ing of pîtysicians and param- edical professionals, and provide an estimation of workers' func- Income splitting stili offers tax savings Iiy Larry Boo)kman, CA Over Uic last few ycars, Uic fcd- cral governmcnt has been bashing a very popular tax planning tcch- nique - income spliîting. That's l)at news for many taxpayers. But, the gooxi ncws is that several ini- corne splitîing opportunities arc still available, and you may yet bc able to shield a few more dollars from the taxman's grasp. Income splitting is csscntially a way of spreading income arnong family memubers 10 reduce yonr tax bill - hence ils populariîy. As practiccd under the old tax mIecs, the highcr income sponse would rnakc an interest-frec boan lu the lower inconie or non-wage carn- ing spouse for Uic ptri<)sc of in- vcsîing. Tax on any incoîne earned froin such invcstments was pay- able by thc investor, at his or lier lowcr marginal tax rate. As long as the boan was bona fide in Revel- nuc Canada's cyes, this kiîîd of arrangement was acccpted. Under the new tax miecs, how- ever, income spliuing in this fa.sh- ion is discouraged. Investîneît income (intecst, dividcnds or capital gains) carncd froîn funtis loaned 10 your spouse is now scen to bc your income and is Laxed at your higher tax rate. So, if your spouse camns $5,000 interest on a boan from you, you wili pay the tax on diat inlercst. Exceptions arc maoleonly if Uic boan toyourspouse bears intcrest at commercial or governmcnt-approved rates and diat intcrcst is actually pait 1 you by your spouse. Soi-ne surviving husband/wife income splitting techniques re- volve around business. If you boan your spouse moncy to start a buisi- ness, and he or she camrs income from that venture, the business income is not attributabie back to you. Rather, your spouse musi pay tax on it. Hlowcvcr, if your spouse invests in a passive business, such as buying into a lirnited partner- ship, income from this activiîy will bc attributcd to you. If bot spousesalready own shares in a family corporation that carrics on an active business, incoine split- ting is possible if the higlier in- corne spouse lbans funds Io lte corporation. The corporation may carn incornc ftom that loan and distributc carnings through divi- dcnds to ail sharchoidcrs without attribution of incomne back to[the spouse who miadc t.hc ban. ln this way, it is aiso possible to split income with your childrcn who arc shareholders. Oîher methods of income splii- ting wiffi ciildren are now limited. hmvesment income earned for a nîinor in a trust, forcexantple, wili bc altributcd back to you if you matie an intcrcsî-frec boan 10 the trust for lite inveslnients. T'here is no attribution for capital gains. Therefore, if your child's trust invests in mutual funds (which do flot gecrate inîerest or dividends) or simpiybunys and selis stocks, the capital gains real izcd will bc passcd on lu Uic child and flot taecd in lte hands of flite parent. Incomte slpiîling with citildtren 18 yL'irs of age anti older is also suîb- ject t0 new ries. MWle capital gains made fron funds boaned lu your adulî chiid will nt b c taxable in your hantis, interest anti oivi- dcîîds earncd from such funds will bc if interestis not charged and paid on Utc ioan. You may prevent having interest ordividcnds attrib- uîcd back to you by giving your son or ttaughter Uic funds outright. For CA's advice on TV - sec Your Wealth, available on broad- cast channels in Ontario and on satellite across Canadia, or sec Moncy in Uic Bank, on your com- muniîy cable channel. Moneycare is general linancial advice hy Canaîda's citartered accountants. Larry lookman is with Collins Barrow - Nlahcu Noiseu x. tionai capacitics. SPlans caîl for approxiinatcly 10 centres, prefcrably linked to uni- versities, which wiii bc responsi- bic for evaluating bctwecn 8,000 anti 10,0(X) patients a .year. The thurd ticr of the strategy is diecestablisitlient of a provincial miecical rChabifiiationi institute, linkcd to a ,major healIth sciences centre yer [o be decermincd. It wiil co-ordinate and conduct cpi- decmiologicai and- heaith* care rcscarch. related to occupationai injuries. It wiii deveiop quaiity control programs for Uhc commu- nity clinics and tic regionai evai- uation'centres, and wiii partici- pate in the training of rehabilita- [ion specialists. Also,lte instîtute wiIl provide consultative services [o hcaith care. professionais treating indi- vittuals with unusual or complex injuries. Oune of thc key principles of the strategy is the separation of WCB's adjudication function froin Uicetlclivery of medical re- habilitation services. Conse- qucntly, dite Board plans to phase out services directiy at the Down- sview Rehabiiitation Centre (DRC). DRC staff are expectcd to be invoived ithiU the new sys- tem or rctained by the Workcr's Compensation Board in other ca- pacities. The DRC's specialized treat- ment andi expertise, as exemplif- cd in its arnputee, head and hand injury chies, will continue to bc offcred until suitabie alternatives ,are availall throughout the pro- vince. DRC will also provide thc set- ting for the establishment of pro- totypes for the community clinies and regiona,.l evaluation centres 1<) aiti in the developiinent of te in- tiepentient clinics and regionai ev'altiation centres. A prototype commnnity chiei is expected t) begin operating at te DRC xvîth- in the next fcw nmonths followed by a p)rotype regional cvalua- lion centre in 1989. The fcasibiiity study for impie- menting the WCB's new miedical rehabilîtation strategy was deve- ioped in consultation with the prov'ince's heai 1h cýare.conmmun i- ty and a broad range of other ini- teresteti parties. "Bti.a.rd staff consuiîed injured worker ani employer gronps, the M inistry otf lealth, the Ministry of Labour, Ontario hospitais, fia- cuities of'1 meicine, paramiedical professional associaitions and varions organ izations and indi- viduais from lab)our, business, le- gai and academie coin uini lies. The response was very ixositivt4," said Dr. Elgie. I have f ull confidlence this stratey will incrcase lte qiiality Safcty Is CHAMP No Accident l>Lgaiti , Baud