Briefly:

Previous Brieflies this week: | MON | TUE | WED | THU |

The Canada Revenue Agency has announced details of the tax rates and deductions that will be in effect for 2009, based on consumer price index data as reported by Statistics Canada.

The basic personal amount rises from 2008’s level of $9,600 to $10,100 for 2009. The age amount creeps higher by $132 to $5,408.

The 22% tax bracket starts at $38,832 for 2009, up from $37,885. The 26% tax bracket kicks in on taxable income above $77,664, up from $75,769. The highest tax rate, 29%, will be imposed on income above $126,264, compared to $123,184 in 2008.

The Old Age Security repayment threshold rises from $64,718 to $66,335.

• • •

RBC issue to raise $2 billion

Another Canadian financial heavyweight is turning to the market to shore up its reserves, as Royal Bank of Canada has announced it will raise $2 billion by issuing nearly 57 million new common shares.

With an over-allotment option for the underwriters of the deal, the bank may end up raising an extra $300 million.

“Our capital position is strong and well above regulatory levels, and we are one of the world’s most profitable financial institutions,” said Gord Nixon, RBC’s president and CEO. “However, the world has changed, and we want to be conservatively capitalized.”

The bank says its Tier 1 capital ratio was 9% as of October 31, 2008. It has since raised $525 million with preferred shares, and the Tier 1 capital ratio is expected to rise to between 9.9% and 10.1% on the issue of the new common shares.

The offering is expected to close on December 22, 2008.

• • •

BCSC offers Investment Caution List

The British Columbia Securities Commission is warning investors about unregistered companies contacting B.C. residents to open investment accounts or trying to sell them unqualified investments. The regulator will publish an Investment Caution List.

“The BCSC helps protect investors from unsuitable and potentially fraudulent investments through investor education and warnings,” said Brenda Leong, BCSC executive director. “Investors should always know who they are dealing with and research an investment before they invest. We encourage investors to immediately report any suspicious investment activity to the BCSC.”

In particular, investors should be wary of offshore investment schemes, as these are difficult to investigate and the recovery of funds may prove impossible.

Investors are also encouraged to visit the BCSC’s investor education website before making an investment decision.

(12/09/08)