Tax tipsHelpful information you should know

Child tax credit

$100 a month per child under age 6

Non-refundable tax credit of $2,000 for each child under 18 Tax savings of

up to $300* per child

Universal Child Care Benefit

*Reflects the reduction to 15% (from 15.5%) in the lowest personal federal tax rate as announced in the October 30, 2007 federal Economic Statement.

Spousal and other amounts

Tax credit

Increased from $7,581 to $9,600* for 2007

Credit amounts will increase to match increases in basic personal amount

*Reflects the increase to $9,600 (from $8,929) as announced in the October 30, 2007 federal Economic Statement.

Registered Educations Savings Plans (RESPs)

Providing more flexibility

Annual contribution limit of $4,000 has been eliminated

Lifetime RESP contribution limit increased to $50,000 from $42,000

Canada Education Savings Grant (CESG)

Maximum annual RESP contribution to qualify for the 20% CESG has increased to $2,500 from $2,000

Maximum annual CESG per beneficiary increased to $500 from $400 per year

Maximum CESG for a year has increased to $1,000 from $800

Lifetime CESG limit of $7,200 has not changed

Registered Disability Savings Plans (RDSPs)

Introducing

RDSPs, the Canada Disability Savings Grant (CDSG) and the Canada Disability Savings Bond (CDSB)

Those who qualify for disability tax credit may establish RDSP

Contributions are not deductible May qualify for a CDSG and a CDSB

Maximum lifetime contribution is $200,000

Investment income on contributions

Will accumulate tax-free Only investment growth, CDSG & CDSBs will

be included in beneficiary’s income

Payments will not affect other benefits

Beneficiary or legal rep. entitled to receive payments

Contributors not entitled to a refund

Lifetime capital gains exemption

2007 Federal Budget

Proposed to increase amount to $750,000 from $500,000

Apply to small business corporation shares & farm or fishing property Occurring on or after

March 19, 2007

At time of printing this proposal had not yet passed into law.

Reducing tax deductions at source

Reduce tax deducted if you have:

Non-payroll RRSP contributions

Child care expenses

Interest expenses on investment loans

Alimony

Maintenance or support payments

Charitable donations or rental losses

Notify payroll by submitting one of these documents

1. A revised TD1 form found on the CRA website or,

2. The Child Amount Notice www.cra-arc.gc.ca

Quebec residents

Application for a Reduction in Source Deductions of Income Tax

www.revenu.gouv.qc.ca

Important notes

The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.

Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including: segregated funds, mutual funds, principal protected notes, annuities and guaranteed interest contracts.

Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.