Year-End Tax Shelter Investing - Proceed with Caution

PLEASE NOTE: THIS INFORMATION WAS ORIGINALLY SUBMITTED BY COOPERS & LYBRAND, CANADA

As we approach December 31, 1997, many individuals begin their annual last-minute search for that elusive tax shelter. There is little point, however, in spending a dollar to save 50 cents of tax. Therefore, all investments should be examined for their ultimate income-earning potential. As the old adage goes, "Don't let the tax tail wag the business dog!". Moreover, investments that receive specific income tax relief are often higher risk opportunities with tax relief accorded to them to encourage investment that might otherwise not be forthcoming. Investors should be satisfied that their investment will yield returns commensurate with the associated risks.