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(June 14, 2006) Being the frugal lot that they are, it appears that wealthy Canadians are the most likely to avoid GST on goods and services for which they pay cash, according to a survey by lawyers.com.

Among respondents earnings more than $100,000 a year, 52% admitted to evading GST payments. By comparison, only 33% of those earning less than $55,000 dodge GST. The survey found the most popular services in the underground economy included house cleaning (40%), work done by general contractors (36%), and house painting (25%).

“We all know that people hate paying taxes-but it’s surprising that 40 per cent of the Canadian population at one time or another has avoided paying sales tax on cash purchases,” said David Douglas Robertson, a tax lawyer with Fasken Martineau and a consultant to lawyers.com. “The liability of knowingly paying for goods or services without paying the applicable sales taxes varies between provinces, but can be as high as $10,000 plus two years imprisonment. Plus, of course, payment of the tax.”

The survey found regional differences in GST avoidance, with 45% of respondents from British Columbia admitting to it, while only 31% in Quebec said they had done so.

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Brown named CEO of Worldsource Financial Management

(June 14, 2006) Worldsource Wealth Management announced the appointment of Paul Brown, CLU, ChFc, as chairman and chief executive officer Worldsource Financial Management Inc. (WFM), effective June 1st, 2006.

“Our mission is to be the dealer of choice for independent financial advisors. Paul Brown’s experience complements that of Andy Mitchell’s, the president and chief operating officer of WFM,” said Sam Greiss, senior vice president, Guardian Capital, the corporate parent of Worldsource. “Together, the two will work to further advance WFM’s position in the wealth management sector by maintaining service excellence to the independent advisor community and by helping to facilitate the continued growth of the Company.”

Brown comes to Worldsource from his most recent posting as president and CEO of Barrington Wealth Partners Inc. In 1999, he sold The Independent Brokerage Group, which he built, to Hub Financial. He then served as Hub’s Chairman and CEO.

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LIIC rebrands as LOMA Canada

(June 14, 2006) The Life Insurance Institute of Canada said at its annual meeting that it shall henceforth conduct business as LOMA Canada, having merged with LOMA in January 2002.

“By unifying the organizations under the LOMA name, we are reinforcing that LOMA’s 80-plus years of resources and breadth of knowledge are available to help all Canadian financial services organizations improve company management and operations,” said Debbie Cole-Gauer, executive director of the LIIC.

LOMA is an international organization of more than 1,200 member companies in over 80 countries. It helps members develop job competencies, select the right employees, design appropriate education and training requirements, fulfill needs for employee learning and development, assess employee performance, and structure total rewards.

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Wraps offer better statements: DALBAR

(June 14, 2006) Investors who opt for wrap accounts can expect much more in-depth statements than those who choose standard mutual funds, according to a study by DALBAR Inc.

Statements for wraps tended to provide better information on personalized rates of return, as well as clearer explanations about why the account has performed as it has and better benchmark comparisons, the study found.

“These statements are designed with a more informed investor in mind, and companies providing these statements have been good at meeting those investors’ elevated needs,” said Mark McDonald of DALBAR. “Wrap investors are getting a very clear picture of how their investments are doing.”

Of the seven wrap accounts DALBAR studied, top marks went to Franklin Templeton Investments “Quotential” program, which scored 81.38 out of 100. Other leading statements are produced by the Mackenzie Investments “Symmetry” program and the AGF Funds Inc. “Harmony” offering.

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(06/14/06)