Ralph Moss Limited

SMART MONEY MOVES

Big refund? Lend less to Ottawa this year

Your income tax refund might seem like a windfall. But it's not. In fact, all it means is that Revenue Canada has enjoyed the use of your hard-earned money all year.

By reducing the amount of personal income tax withheld from your paycheque, you can see to it that your refund for the 1996 tax year never leaves your hands, so you can invest it and make it work for you.

If you have made sizeable RRSP contributions or charitable donations, your taxable income is probably less than the amount on which your withholding is calculated. By applying to Revenue Canada, you can arrange for these contributions to be taken into consideration and have less tax deducted from your paycheque.

YOUR MOVE. Write or visit your nearest Revenue Canada taxation office, and explain why you want less tax deducted at source. You'll be expected to provide proof of regular contributions to your RRSP, group RRSP, or a registered charity. If Revenue Canada approves your request, your employer will be authorized to withhold less tax, and you'll see your net pay rise.

With no tax increases and no additional taxes, the March 6 federal budget didn't elicit much reaction from the general public. However, it contained a number of measures that may affect you immediately. Even more important, the budget's pension reform proposals have serious implications for all Canadians.