. B8 Terrace Review — Wednesday, February 13, 1991

~ Revenue Canada’s take is

~ zooming up, up and away

The First World War, 1914-
18, was one of the most hor-
rible contlicts in history. It can
also be blamed for the imposi-
tion of income tax In this coun-
try. for it wasn't until 1917 that
the tax began — as a “lem-
porary” wartime measure
that's been with us ever since.

Until then, the federal gov-

ernment had financed its oper- .

ation through indirect taxes,
custom duties and excise
taxes.. ;
That first year, 1917, the take.
was just $12.5 million. But by
1920, collections of personal
and corporate income taxes
were $20.3 million, plus “ex-
cess profits and other special
taxes” of $44.1 million. In
1930, although excess profits
taxation was a thing of the
past, personal and corporate
income taxes were $69 million.
By 1940, the first full year of
~ the Second World War, collec-
tions of federal taxes were over
$134 million, and in 1945, the
year the war ended, they
passed the $1.5 billion mark,
the first of the many billions of
taxation to follow in the post-

what in 1950 — at $1.3 billion.
but had almost doubled to $2.5
billion in ‘55 after the Korean
War, and were $3.1 billion in
1960.

In the 30 years since then, it's
been up, up, and away, wilh
collections (including Canada
Pension Plarmlevies since 1966
and Unemployment Insurance
premiums since 1972) of al-
most $11 billion in 1970; over
$23 billion in 1975; and. over
$32 billion in 1980.

Since then, Revenue Canada
collections (rounded to the
nearest billion) have been as
follows: for fiscal 1981, $44 bil-
lion; 1982, $53 billion; 1983,
$57 billion; 1984, $61 billion;
1985, $67 billion; 1986, $71

billion; 1987, $81 billion;

1988, $93 billion: and 1989,
$98 billion.

The 1989-90 figures aren't
available yet, but Revenue
Canada's collections are

‘pound to have passed another

milestone tn the upward spiral
~— over $100 billion. That's 1
plus 11 zeros.

So hold onto your hat for the

Get it together so you can

come out ahead |

Managing RRSP assets isn't
always easy — especially if
your money is spread among
several accounts. :

If you have anumber of plans,
either at one financial institu-
tion or several of them, now
may be the time to consider

consolidating them into one.

place.

Multiple RRSPs used to -be
popular for two reasons. First,
tax rules required you to col-
lapse your whole plan if you
wanted to make a withdrawal.
Having several plans made this
easier, But the rules have
changed — now you can make
partial withdrawals at any
time, although you still can get
hit with income tax — so be
careful.

Second, having RRSPs at dif-
ferent institutions enables you
to maximize deposit Insurance
coverage. However, several
banks and trust companies are
now set up as more than one
company, each being a mem-

-ber of the Canada Deposit In-

surance Corporation. There-

fore you can effectively double
the $60.000 deposit coverage

ceiling on most RRSP invest- —

ments.
There are several advantages

to holding your RRSP assets in
one place:

O Convenience: You won't -

have to deal with several
different financial institu-
tions when you want to
make deposits or arrange
withdrawals.

oO Efficient management:. If
you are using an asset mix
strategy you can determine
your current holdings and
move money around more
easily in a single account.

oO Higher returns: Many
financial institutions offer
higher rates for large ac-
counts. If the total value of
assets in all your plans is

- Jars a year.

aa

substantial, find out if
you're getting as much as

you could by rearranging

your deposits.

Costs: You can reduce your
costs significantly by
paying any RRSP ad-
ministration fees to_only
one institution. This is
especially true ifyou havea
number of self-directed
plans. Annual fees for these
normally range from $100

to $200. By consolidating .
_all of your plans, you may

hundred dol-
Royal Trust

save several

“, 0) fi

BE PREPARED

If you're like moet people, a
tiny part of you refuses to
believe the GST is reality. But, it is
here, and, with a little knowledge,
patience and common sense, you will

wy
Y

»

1990s!

war era.
Collections were*down some-

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