Home Newspaper Mid-October 2006

Mid-October 2006

Comment & Insight

The front-runners are emerging, but the outcome is still a big unknown

The task force struck by the Investment Dealers Association of Canada has handed down a report proposing a series of good, solid reform recommendations. But…

Quebec’s language struggle has changed; it took the Dawson shootings to make that clear

Decline in U.S. housing starts, high C$ and rising construction costs take their toll

But productivity, not debt repayment, should be the focus

Building Your Business

Parents should know about a new benefit, new credits and a higher ceiling

Even anonymous donors want the tax benefits

The Conservative government seems to prefer small tax breaks geared toward garnering votes

Government attempt to create tax equality could threaten the income of some retired Canadians

Some economists say GST cuts should have been tied to harmonization agreements with all provinces

But it is clear that the CRA won’t allow a taxpayer to claim the monetary benefits accorded to both types of workers

Confusion surrounds child support agreements and court orders made before May 1997, when the system changed

A strategy only for top-income Canadians, who can benefit from the write-offs and withstand exposure to high-risk stocks

In some circumstances, tax credits can be obtained for air conditioning, adapting a vehicle, driving to a medical facility

Special circumstances when surviving partner is not named as beneficiary, or child is named

The big challenge with private companies is ascertaining the value of the shares that go into retirement savings accounts

Measures are aimed at taxpayers resident in specific provinces. Provinces’ Web sites detail programs available

The taxman long ago tired of people who plot and scheme to avoid paying up, and the pursuit shows no signs of ending

The estates of clients who die while living in Canada could be subject to taxes in both the U.S. and Canada

Severe consequences for claiming an incorrect fair market value on tax return

Quick changes urged by tax experts because draft legislation is scheduled to go into effect for dividends paid out in 2006

This complex area usually draws the taxman’s scrutiny because people make a lot of ineligible claims

From dividend tax rules to the children’s fitness tax break to transit credits — tax experts share their favourite pointers for 2006

News

Canadian families at the top of the income scale are now better prepared for retirement than they were 20 years ago. That’s the good news.…

Report offers innovative ways to serve investors, but some proposals will be difficult to implement

A move from prescriptive rules seems doomed under our provincially fragmented system, with no consensus among regulators

Morningstar Canada officially launches its mutual fund categorization system

Blue-ribbon task force looks at content of regulation, not the structure

What you should tell your clients

Sources say Wellington West Capital Inc. paid $5 million-$10 million to repatriate ownership stakes

One of the centrepieces of the move of Britain’s Financial Services Authority to principles-based regulation is an effort to ensure that retail clients get a…

Manulife’s GIF Select IncomePlus is based on the premise that Canadians are vulnerable to market risk just before and after retirement

Those that succeed concentrate on providing distinct product and service offerings

More than half the recommendations reflect the fact that Canada’s securities regulatory system lags that of other major markets

Quebec’s proposals may be a good starting point for lightening the burden on Canada’s public pension system

Investment research

Investors have to look at covenants to determine where they really stand if there are problems at the issuing company

With option premiums currently low, now is a good time to buy straddles

But leaving $5 million behind could be a challenge if they spend more than they currently expect

And the energy sector has become the second-largest source of Canadian dividend payouts, by a significant margin

By 2011, 85 million North American homes will be connected to fibre optics

Focus on Products

Lofty expenses are eroding Canadians’ ability to provide for their well-being

Some managers think gold will hit US$1,000 an ounce in the next few years, propelled by parlous state of U.S. economy

Real estate investments provide rental income, but there is also the potential for capital gains

Principal-guaranteed investment offers rate of return tied to the legendary Oracle of Omaha

FrontierAlt launches bond fundToronto-based frontierAlt Investment Management Inc. has launched frontierAlt All Terrain Bond Fund, which will be managed by a team led by Robert…

Improvements needed for retirement income simulation software

Investors Tactical Asset Allocation C Fund and Fidelity Global Asset Allocation A Fund each show weak spots