It was not uncommon to see several boys picking small rocks out of their knees in the hallway after lunch.
On a typical gravel playing field in rainy North Vancouver, the older boys played soccer nearly every lunch period. Considering the dank weather, the unforgiving fall air and the harsh playing surface, it's a wonder the game got the traction it did - but it did. Maybe the lads all just wanted to be where all the others were, and nobody had a better idea.
I had no accomplice other than my Irish sense of injustice. I was in Grade 3, and by no means had I hit any sort of growth spurt. It just occurred to me that intimidation wasn't a bunch of 10- to 13-year-old boys hogging the only ball on the only field. Intimidation was a big brother whose solemn duty was to nurture bruises daily, who chased friends out of the yard with an axe, and convinced all the girls in the neighbourhood that he was a wolf.
Not a werewolf, mind you. A wolf.
So the ball. I wanted it. The teacher said it was my turn. Or something like that.
I suppose there was a some strategy in waiting until lunch was nearly over, but after dozens of times ball-boying errant kicks for the big kids, this time I caught it in my hands, turned and ran the other way, full-on sprinting, toward the stairs leading around the school.
Five minutes later I was rope-a-doping strategically while counting in my head just as the end-of-lunch bell rang and the lunch-ladies made their rounds. This kept me alive a little longer, but the big kid who held the scruff of my shirt, leaned in and said those immortal words: "Meet me at the Paper Shack. Three. You're dead."
A bully takes his pound of flesh one way or another, and a bit of strategy might allow for an escape. The taxman is not so much a bully, but a legitimate player, ostensibly levelling the playing field. But when he comes for a visit, it's not like we are all: "Hey wait! You forgot something. Here you go." Instead we learn the rules and keep them, as advantageously as possible. A few more tips follow.
Receiving a bonus prior to year-end creates additional RRSP contribution room for 2019 if you have not yet reached the maximum for the year. It may also allow greater employee/employer pension contributions and/or employee profit sharing plan contributions for 2019. On the other hand, if you expect to be in a lower tax bracket next year, consider deferring the receipt of your bonus (if your employer permits) to early 2019.
If the bonus is paid directly to you, there will be withholding taxes unless your employer permits it to be transferred directly to your RRSP. You must have adequate unused RRSP deduction room in the year of transfer.
If you expect to be in a low marginal tax bracket for 2018 and a much higher marginal tax bracket in retirement, you may want to consider making an early withdrawal from your RRSP before year-end. The advantage of this strategy is that you can avoid a higher tax rate on these RRSP funds if withdrawn in the future when your marginal tax rate may be higher. If you can reinvest the RRSP funds withdrawn in your non-registered account, you can take advantage of the preferred income tax treatment on capital gains, Canadian dividends and return of capital. Furthermore, if you can reinvest the RRSP funds withdrawn in your Tax-Free Savings Account (TFSA), you do not pay any future tax on the income earned or capital gains realized. The drawback of this strategy is a prepayment of income tax and lost tax deferral on the growth of the RRSP funds withdrawn. It's all in the math, and good financial planning software can help.
If you are required to make quarterly tax installment payments to the CRA, you should make your final payment on or before Dec. 15 to avoid late interest charges. If you missed an earlier installment payment deadline, you may want to consider making a larger final installment payment or make your final installment payment earlier than the Dec. 15 deadline to minimize late interest charges.
Making a charitable donation is one of the ways that you can significantly reduce the personal tax you pay. As an alternative to donating cash, you can contribute publicly listed securities in-kind to qualified charities without being subject to tax on the realized capital gain. You will receive a donation tax receipt equal to the fair market value of the security at the time of the donation, which can help reduce your total taxes payable.
This transfer must take place before year-end, so ensure you start this process well in advance to allow for processing and settlement time, typically at least five business days - also allowing a few days to account for half the world being on vacation that week. Lastly, be sure to verify that the charity organization is willing to accept in-kind donations.
Mark Ryan is an investment advisor with RBC Dominion Securities Inc. (Member-Canadian Investor Protection Fund), and these are his views, and not those of RBC Dominion Securities. This article is for information purposes only. Please consult with a professional advisor before taking any action based on information in this article. Ryan can be reached at mark.ryan@rbc.com.
