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c14 economist sun february 10 1988 c focus u sin ess more services no fees instant tax receipts no lineups instant rrsp loans more interest highly competitive pies more options choose your favourite plan gic plan special savings plan short term plan selfadministered plan standard trust 39 main street n markham good value for buck in development plan while many investors are awaiting market rallies to re move themselves from stock posi tions they no longer wish to hold others are seeking conservative equity vehicles that offer good value combined with safety capital growth potential and ideally some form of tax break one such vehicle that is gaining acceptance among experienced inyestors who want equity invest ments but do not want the volatil ity of the stock market is the small business development corporation sbdc the sbdc act was passed by warning reading this ad may disappoint you with your present insurance special rates for markhamunionville homeowners example s120000 homeow ners package on a 5 year old home with guaranteed re placementrebuilding cost annual premium 38 pay monthly no interest charged for further information call wally beaverbrook insurance real estate ltd 7590266 or 7592771 money moxy darryl cailes the ontario legislature in 1979 to stimulate investment in certain sectors of the ontario economy the act provides incentives to sbdc investors in the form of a taxfree cash grant to individuals and ontario tax credits to cor porations equal to either 25 per cent or 30 per cent of the money invested depending on where in ontario the corporation invests 600 companies listed each sbdc must comply with the strict requirements of the act with regard to eligibility of invest ments capital requirements dis position of investments etc there are currently over 600 corporations registered as small business development corpora tions in ontario with total issued capital in excess of 335 million the best known of the sbdcs is the publiclyowned granite group of companies which invest in the tourist sector of the ontario economy granite has interests in resort hotels in the muskoka lakes and the thousand islands regions of ontario the logic behind investments in resort hotels goes like this first of all the company owns the real estate mortgagefree and prime incomeproducing real estate in ontario has a nice habit of consis tently rising in value secondly a recession is not a worry because during a slow down in the eco nomy people dont stop spending they simply spend more careful ly rather than vacationing in europe or the us they may stay a little closer to home thirdly there is the unavoidable fact that the dollar in your pocket has de clined roughly 50 per cent in value against the major world curren cies over the past dozen years that means the trip to europe is now wildly expensive for cana dians and a vacation in canada for european or japanese tour ists is a spectacular bargain the tourism business in ontario just may be in for a boom period good tax break but what really appeals to many investors is the tax break on top of the 30 per cent taxfree gift from the ontario govern ment the sbdc shares qualify for rrsp contributions if your mar ginal tax rate is 40 per cent for instance you add this to the initial 30 per cent and the result is an actual out of pocket cost of 40 cents on the dollar as long as you are comfortable with the investment objectives of the small business development corporation whose shares you are buying the tax break simply cant be beat darryl cailes is an independent in vestment consultant living in gormley firm wins images for industry a mar kham advertising company re cently won three awards for its 1987 campaigns image awards of the specialty advertising association of cana da recognize outstanding creativ ity in marketing images for industry won gold medals for campaigns for honda canada and telecom canada and a bronze award for the campaign of tuco products division of up john pharmaceutical r ai w taxfforld financial services 7665 kennedy road box 96 millikcn l0h 1k0 notice to taxpayers in high taxbrackets you are invited wilh no obligation to leam about a programme which enjoys grandfathered protection from the proposed new tax rules 100 tax deductibility for 1988 80 assured cash flow by 1989 guaranteed buyback option financing up to 90 available be ready to take advantage of perhaps the last and most decidedly the best taxsheltering opportunity which will not be adverccly affected by proposed tax reform please call donald burgess or gordon miller at 4799477 4499184 an excellent tax sheltering opportunity