The 1986 / 87 Canadian Tax and Investment Guide

Vernon V. Kakoschke was a lawyer in the law department of Canadian Pacific.

This book is the second edition of The New Canadian Tax and Investment Guide which was first published in 1980. It incorporates changes in tax law brought into effect by Finance Minister Michael Wilson’s budget of February, 1986. This budget includes such important developments as the lifetime capital gains exemption of $500,000. Unfortunately, tax rules change with every new budget and this book does not include changes introduced in the last two federal budgets. For example, the capital gains exemption has now been reduced to $100,000 and this change, along with some other significant developments, is not reflected in the book.

Despite the fact that the book is now somewhat out of date, it is nevertheless a valuable introduction to the basic concepts of tax planning. This is not a how-to-prepare-your-tax-return manual. Rather, it offers some clever strategies for minimizing the tax bite.

Most financial situations are covered in this book. It has chapters on estate planning, separation and divorce, new business ventures, the use of holding companies, tax shelters, RRSPS, and retirement planning. The chapter entitled “Tax Planning for the Commissioned Salesperson” thoroughly covers the position of a salesman and provides some excellent tips for avoiding (as opposed to evading) taxes.

This book is a well-written and understandable guide to tax saving strategies. It is hoped that the author will soon write a third and more up-to-date version.