By Rubina Haq-Ahmed

Toronto

Bring up the topic of cable, internet or phone companies and you’ll inevitably have hours of conversations that range from, how someone got the best deal to how a customer feels totally ripped off by the high fees.

In my case I went from feeling totally valued by my communication provider, to completely duped in a matter of four months.

Here is My Story

On several occasions in December 2011 my Internet connection failed. Once, I was told, because of an area outage, another because of construction near by that knocked down a pole and a few more incidents that my Internet provider could not explain. After one lengthy outage, that lasted more than 24-hours, I was getting particularly frustrated because I work from home and having an Internet connection is key to my business.

I don’t believe in calling your Internet and cable provider to ask for a discount just because you want it, but I did want to be compensated for my inconvenience. I deserve to have the internet connection I’ve paid for, with no interruptions.

The Discount I Couldn’t Turn Down

At the time Customer Service at Rogers was great. As a way to say sorry, Rogers offered me a deep 70 per cent discount on my internet service with a guarantee that I would keep my internet service with them for two years. The kind representative went a step further to credit me back the days that I had no service. Really how could I say no. I was told how much my total bill would cost, including cable for the next 24 months.

I was over the moon at the rate I was getting. I tweeted about it, sent kudos to Rogers Help desk and made it known I was a happy customer.

When the Honeymoon Ended

Then in March 2012 I noticed my bill had gone up by $5. How could this be?! I had struck a 24 month deal with my provider in December. When I called to ask them why, they told me my cable package would now cost $5 dollar more every month and there was nothing I could do to change that. I then learned the deep discount I had on my internet service came with a stipulation, that I had to pay the cable TV service at the regular rate even if it went up. They added they could theoretically raise my cable TV rates and I could not negotiate or complain. I can’t leave and go to another cable provider either, if I did I would have to “pay back” the internet discount I was getting and pay an early cancellation fee. Even though I have been a Rogers’ customer for more than 10 years.

My Negotiating Skills are now Zero

I investigated what Bell was offering and found they had the same package for $35 dollars less, but Rogers told me they would not match it and I could do nothing about it. I’m still trying to leave the cable portion of my Rogers package, because it was never explained to me that the deal was so restrictive.

How can they Break a Promise with no Repercussion?!

This is the problem I have with Rogers, they made me a deal in December that I would get a certain rate on my internet for 24 months but never explained that it included me paying the full rate for cable and that they could raise that rate when they needed too. They also never explained that the two services were tied at the hip and I could not leave or negotiate the cable without affecting my internet deal.

I’ve never asked to break my internet deal, the one they were saying sorry for, I only want a fair price on my cable that other competitors are advertising or at the very least don’t raise the price if I don’t have the power to leave.

Lessons Learned

What I learned from this experience is keep your cell phone at one carrier, cable at another, Internet at a third and landline at a forth. There are enough service providers out there to make this happen.

The only service I have ever been able to negotiate effectively is my cell phone, which I have through Telus. It’s because it’s the only business I give them.

My main message is NEVER EVER bundle your Internet, cable, wireless and phone into one bill, keep the power of negotiation in your hands.

Courtesy: http://www.ratesupermarket.ca/blog/beware-of-bundle-packages/

By : Rubina Ahmed-Haq
Toronto

Summer is only a few months away and many of you might be planning on taking a holiday to get some much needed R & R. But before you press “buy” on that expensive European holiday you have to decide if you can afford it. Here are some simple ways to figure out how much you spend this year. 
The 4% rule 

If you’re carrying a mortgage, line of credit or any other low interest loan I recommend spending 4% of your after tax income on vacations. Why? Unless you have no debt anymore, than any more spent on vacations will be eroding into your long-term savings. If you’re carrying ANY high interest debt like a credit card or store card loans, you must pay this off before you hit the road (or the beach) on a holiday.

Cash in the bank

Always pay cash for your holiday. NEVER charge your holiday on credit unless you have the money already in the bank. Remember following the 4% rule, if your household income is $50,000 your holiday budget is $2,000 annually. Want to spend more? Save longer. Make one year a staycation to afford a luxury holiday the following year.

Taking a break doesn’t need to cost you a fortune

It’s important to take a break and have some time to recharge. But if your bills are piling up, this is the year to use some of your vacation money to get out of debt. You can take a break without spending to much money. Road trip, previously mentioned staycation, visiting family and friends.

Stretch your holiday dollars

Booking a holiday out of country the prices are usually best around six weeks in advance. Check rates on line and call competing agents to see if they can beat it. Traveling midweek is cheaper for flights. Look for all-inclusive roulette holidays; these are ten preselected hotels at a certain star rating offered at a discounted price. Recently I stayed at a 4 star plus for $1054 taxes in. I would have paid twice that if I booked individually. The catch is you find out your hotel name 3 days prior. You pick the general area, i.e. Mayan, Cancun or Punta Cana.

Look at costs from all angles

It’s always wise to do through research before you go. Online review sites like tripadvisor.ca have made it easier to plan and prepare. Pay attention to details like, is the airport transfer included? Is there departure tax? What’s the average cost of eating out? For example I priced out a villa in St. Barts once at a reasonable rate, but later learned, through research, that the cost of groceries, transport to the island, restaurants was much higher than anywhere else in the Caribbean. Staying there was reasonable but everything else was too expensive.

When can you not afford to take a vacation?

By taking a close look at your finances you can decide if you can afford to get away this year. Generally your after tax income should be divided as follows.

• Housing 30%
• Savings 15% (10% pay yourself- 5% short term)
• Other Living Expenses 30%
• Debt servicing 10%
• Transportation 15%

Break this down and your mortgage and taxes should not cost more than 30% of your after tax income, transportation shouldn’t exceed 15% If you’re spending more than this amount, you might want to look at tackling your household debt before you spend money on getting away. That said you should still look at ways of taking a break from work, staying at home, visiting family or a short weekend away, all of this will make you feel good and not drain your finances.

Cheap Vacations Ideas

1.   Book a night or weekend at a nearby hotel.

2.   Check out local festivals.

3.   Hit up the museums for a dose of culture.

4.   Spend some time with the great outdoors.

5.   Hit the beach with a pile of books to read.

6.   Have a proper Girls or Boys night out on the town.

7.   Live in the city? Get out of town to a local trail for an all day hike.

8.   Visit social coupon sites to stack up on great deals to use during your staycation.

9.   Take dance lessons.

10. Get a one-week pass at an ultra high-end gym.

Courtesy: http://www.alwayssavemoney.ca/

Gord Hundal, VP, Commercial Financial Services, RBC

RBC has been a pioneering financial institution when it comes to fulfilling the needs of new Canadians. The bank’s Welcome to Canada package helps customers with their personal and small business needs. However, RBC also has an extensive commercial banking offering to help entrepreneurs flourish in their business. Recently, Generation Next had the opportunity to talk to Gurinder Singh (Gord) Hundal, the Vice President Commercial Financial Services. He is responsible for RBC’s Business Clients in the industry specializations of Business Services and Retail and Franchise Markets for the Peel market.

A typical client in Gord’s portfolio “would be someone who’s got revenues of more than $2 million, more than five employees, some degree of complex ownership—they are multinational, they have some sophisticated cash management product, and they could have some credit needs or maybe they don’t have any credit needs. An example of a client in our portfolio would be a law firm with about $20 million in revenue, about 10 lawyers on staff, is complex in the sense that it’s a partnership structure, and they have lots of different needs.”

RBC helps these clients with their borrowing needs, deposit needs, as well as with everyday banking needs. “From the borrowing perspective,” says Gord, “we help them with term loans or leases for equipment, operating lines of credit, to help them manage their cash flows and commercial mortgages to help them buy real estate, which is something a lot of our clients seem to be doing these days.”

As a representative of a bank that prides itself on its outreach to the South Asian community, Gord finds South Asian clients highly sophisticated when it comes to commercial banking. He gives an example, “I am thinking about this restaurant owner—he has owned and operated businesses in India, Pakistan as well, and they have an understanding of how businesses can be supported by banks.” Gord says RBC’s commercial clients and South Asian clients rely on four key pillars—convenience, advice, service and value for money. He explains further, “My team works with business services in retail clients. So any clients that are business-services or business to business, or business to consumer on the retail side of things—law firms, accounting firms would be part of our portfolio, as would be restaurants, gas stations, small retailers, marketing companies. So we, by providing specialized advice help our clients because we’re familiar with their types of businesses, but we also have the opportunity to understand that there’s a difference between a business-services client, say a law firm and maybe a trucking company.

For Canadian companies that are based here and looking to do business internationally, RBC helps them navigate globally. The bank provides such clients with industry-specific advice and professional services, competitive foreign exchange rates and flexible credit solutions. RBC’s global network of premier financial institution helps their clients gain a wider perspective too.

With regard to enhancing the level of financial literacy among their South Asian clients, RBC takes a case-by-case approach. Says Hundal, “Someone starting off a business will have a very different conversation than someone who’s perhaps at a point where maybe they want to transition the business to maybe want to sell the business.” The bank also spends time with clients to introduce them to law firms or accounting firms that can help them get better financial literacy.  Additionally, RBC is involved with the Newcomer Centre of Peel to help new Canadians get acquainted with the finer aspects of Canadian banking and finance.

Commenting on current trends, given the economic downturn, Hundal says business clients seem to be showing cautious optimism when it comes to borrowing or investment decisions. However, he adds, “our business clients that have identified growth and are looking at new growing markets such as the Bramptons and the Mississaugas of the world are definitely still borrowing money to help fund that growth.”

One of RBC’s core values is “Diversity for Innovation and Growth.” Describing his own role in furthering diversity within his organization, Hundal says, “I am the Executive Champion for the Greater Toronto Area, newcomers to Canada, employee resource group—it’s an internal group that promotes resources and sharing of experiences within RBC so that staff who are new to the country can have the opportunity to connect, share best practices, and be introduced to various other members of the RBC family. I have also taken on several individuals to help mentor people who have demonstrated strong business and financial acumen and need to get a better understanding of how you do business in Canada, what is leadership in Canada. It’s something I am very passionate about and devote a lot of my time to—coaching, nurturing and sharing some of my experiences with some budding South Asian talents and individuals.”

RBC has also taken initiatives to promote cricket in schools. Generation Next asks Hundal about the wisdom of this investment. He explains the initiative is part of the bank’s commitment to growing healthier communities at the grassroots level. Recalling an anecdote around the game, he says, “A couple of years ago, in my previous role, we actually had an internal cricket match between two markets for our branch leaders. First of all, it was a lot of fun, and the majority of my team and the team we played had never played the game before, but having the opportunity to play a game of cricket, our sales leaders developed an understanding of the game, why our clients are so passionate about cricket.”

In a similar vein, Hundal tells Generation Next readers that “On February 20, eight locations across the GTR are going to host free skating sessions. It’s an opportunity to get out and skate, embrace the Canadian sport of hockey, and win possibly signed jerseys and just have some real fun on our family day. In our experience, a lot of our South Asian clients are excited by this opportunity because they never had the opportunity to go to a rink before. By hosting this event, we are introducing a key fabric of the Canadian community to a community that wants to learn and live and try a sport that’s popular here in Canada.”

With its twin objectives of smart banking and building healthier communities, RBC is likely to win a lot of appreciation from the South Asian community in Canada. And that may well translate to winning more clients.

The frustrations of getting employed in Canada are often particularly severe for new Canadians, a group that often sells most or all assets in their jurisdictions of birth in the hope of a new life in Canada. Often times, whether by design or compulsion, new Canadians are driven to starting a business as a source of livelihood. While the success stories from such opportunities are many, the decision to start a business has legal ramifications and a business should be commenced with as much planning and legal advice as possible. At the forefront of the business decision is a determination of the appropriate vehicle to use for such purposes.

This article focuses on the use of a corporation as a business vehicle and canvasses some of the basic issues to be considered in this regard. This article is for informational purposes only and should not be construed as legal advice.

Benefits of a Corporation

A corporation is often the first vehicle of choice for entrepreneurs. While carrying on business as a sole proprietor (i.e., without any formal business vehicle) is often the easiest option, a sole proprietor is personally liable for the liabilities and obligations of the business and may unknowingly expose his/her savings and assets to creditors and any other person having a right of action against the business.

The use of a corporation allows an entrepreneur or new business owner to protect personal assets and savings from the liabilities arising from the business. It provides a corporate veil that may not be pierced otherwise than in egregious circumstances. It also allows for the conduct of the business through a proper business vehicle, allows for sophisticated tax planning if the business is successful, and may enable the business owner to access outside funds (whether through loans or investments) more efficiently.

Incorporation Basics

Incorporating a corporation in Canada is a simple yet complicated task. On one hand, a corporation can be incorporated without legal or accounting help. On the other, a proper incorporation done with the help of sophisticated advisors can be effective and a cost-saver in the long run.

A corporation may be incorporated federally or in any of the Canadian provinces. Some provinces like Nova Scotia also allow for incorporations of unlimited liability companies, a tax planning vehicle not considered in this article. The key distinction between a federally incorporated and a provincially-incorporated corporation is that the former may carry on business in any province or territory (provided that it complies with the applicable registration and reporting requirements of each province) whereas a provincial corporation is required to obtain an extra provincial licence and register in any other province where it carries on business.

Incorporation is done by filing articles of incorporation along with the preparation of the relevant by-laws. The corporation should issue shares on incorporation (although technically it may be possible to incorporate a corporation without share capital). Shares are issued to shareholders in return for consideration that could include cash or property (a contribution of property in return for shares may require a tax election to ensure that the contribution may be made without any immediate tax consequences).

A corporation must choose a name for incorporation purposes. If no specific name is chosen, the relevant incorporating agency will issue a default name (usually a name identified by a unique number). If an actual name is sought for the corporation, a search for the particular name must be conducted in order to determine if the name (or extremely similar versions thereof) is already in use, in which case the name may not be available. Different jurisdictions provide different levels of protections for names, and depending on the jurisdiction of incorporation a name may or may not be available for use. It should be noted that the availability of a name for incorporation under a federal or provincial statute does not usually provide protection for that name from an intellectual property standpoint. Appropriate intellectual property registrations must be considered for such protection.

A corporation must also provide for a minimum number of directors and have at least that minimum immediately after incorporation. Most Canadian statutes require a minimum number of Canadian directors for corporations incorporated under such statute. For example, Ontario requires that at least 25 percent of the directors of a corporation incorporated in Ontario be resident Canadians. It should be noted that there is no such requirement for the shareholders of a corporation (except in protected sectors).

Generally, a corporation has the capacity and, subject to its governing statute, the rights, powers and privileges of a natural person. A corporation is usually not restricted by its articles from carrying on any business or businesses or from exercising any power or powers. A corporation must choose a financial year-end in its by-laws. The initial by-laws usually also provide rules for a host of other major issues relevant to the operation of the newly incorporated corporation (e.g., annual proceedings, notices and returns, shareholder meetings, proxies etc.).

Tax Registrations and Rates

A corporation must register itself for tax purposes. Generally, the act of incorporation should result in an automatic business number from the Canada Revenue Agency (“CRA”). Otherwise a business number may be obtained by completing Form RC1 (available on the CRA website). A corporation that makes taxable supplies must also register for the Harmonized Sales Tax. Where appropriate, payroll accounts and/or import/export accounts must also be registered.

A corporation is required to file an annual tax return within six months of its year-end. Under certain circumstances (e.g., an amalgamation or an acquisition of control), the taxation year may terminate early, in which case, the corporation must file a tax return within six months from the date of such termination. Harmonized Sales Tax Returns must be filed annually, quarterly or monthly depending on the volume of the corporation’s taxable supplies.

Corporations are taxed at different rates than the rate of tax on individuals. To this extent, incorporating a business allows the incorporator the opportunity to defer tax if the income of the corporation is not passed on to the shareholders immediately. A simple example illustrates this point. An individual resident in Ontario and carrying on business as a sole proprietor will pay tax at the highest marginal rate of 46.4 percent and may end up paying tax at that rate on part of the business income in the year in which such income is earned. On the other hand, if the business is carried on through a corporation, the rate of tax on the corporation will vary from 15.5 percent to 28 percent (discussed immediately below). If the corporation does not pass on its after-tax income to its shareholder immediately as a dividend, the difference in the rates of tax allow for deferral of the additional tax that would have been paid had the individual earned such income directly. It should be noted that the combined rate of tax on corporate income and on income received as dividends by an individual shareholder will be similar to the rate of tax imposed on an individual earning business income as a sole proprietor, and hence, the deferral is only available if a corporation retains its income and does not pay it out immediately as a dividend.

As noted above, a corporation is taxed at rates varying between 15.5 percent and 28 percent (these are combined federal-provincial rates applicable to a corporation paying tax in Ontario at the time of writing). The rates of tax applicable to a Canadian-controlled private corporation (i.e. a corporation not controlled by non-residents or public corporations) are 15.5 percent for active business income up to $500,000, 28 percent on active business income in excess of $500,000 and 46.2 percent on investment income. A corporation that is not a Canadian-controlled private corporation pays tax at 28 percent on active business income and investment income and 26.5 percent on general manufacturing and processing income. Generally, income taxed at normal tax rates can be paid out as dividends to individual shareholders resident in Canada at a lower rate of tax than income taxed at the lower tax rate.

Conclusion

This article is a simple discussion of the benefits of the use of a corporation as a business vehicle and the advantage of using a corporation from the commencement of the business. It is not an exhaustive discussion of corporate and tax issues surrounding a corporation. Readers should consult a legal advisor about the exact issues pertaining to their unique business and individual circumstances.

Ron Choudhury is a partner and member of the firm’s Tax and Mining Groups and Estates and Trusts Litigation Team.

“Everyone, whether they have a job or not, will need a place to live—whether it is in an apartment or a home. Especially in the South Asian community, we can get a house anywhere without a job because we can live together and share a place. So the house market has not been affected in the GTA for that community.”

Mike Chettri has worn many hats throughout his life. Blossoming over the years as the familiar immigrant taxi driver to the neighborhood corner store owner to what he is most known for, a booming real estate agent within the GTA, Mr. Chettri has finally found a hat that he will not only wear with pride, but ultimately keep for good.

With his name engraved as the 2011 Hall of Fame recipient, apart from his fellow four thousand other Remax agents in the GTA, Mr. Chettri attributes his success to mainly his customer service skills that have eventually resulted in many word of mouth referrals. “I teach all my clients about how to handle their money. I give them advice on their house and where to buy. That is what made me on top. It made me stand out.”

With his ten years of customer service in the real estate industry, Mr. Chettri has shared with our Generation Next reporter a few of his words of wisdom for potential buyers looking to take advantage of the next hot thing in the real estate market.

As condos within the downtown core are becoming somewhat of a trophy item for young professionals, Mr. Chettri encourages investors that it is a worthwhile investment for not just the younger generation, but the older ones as well. “The youth in the next generation are definitely interested in the condos for living, but the older generations are buying condos for investments. Since I work mostly with condos, the way that I see it is that the condo market will remain strong. Right now the condo market is selling approximately 700 dollars per square foot. If you buy one condo now, in three years, the price will be 1,000 dollars per square foot. So for every square foot it would be a 300 dollar profit. Over the next three years, the condo market in Toronto will grow stronger.”

As condos continue to be sought out, there are still many factors that individuals should consider before taking that next step. Mr. Chettri cautions new buyers on what factors can become a major assets when deciding on where one chooses to live. “Look at the city plans over the next five years of where you want to move to. See what is being developed so that in five years the price will go up in your investment.” Thinking ahead is the key to Mr. Chettri’s advice to his clients as many buyers can later flip their investment into a profit that will ultimately land them in a bigger and better property in the future.

Even with the recent economic setback, with many Canadians struggling to find full-time jobs, Mr. Chettri is optimistic that this will not have a great impact on the real estate market. “Everyone, whether they have a job or not, will need a place to live—whether it is in an apartment or a home. Especially in the South Asian community, we can get a house anywhere without a job because we can live together and share a place. So the house market has not been affected in the GTA for that community.”

With the GTA continuing to fill orders for more condos and houses to be built for their clients, residents are becoming more and more familiar with the buzzing chainsaws of the 6 am morning construction worker. Mr. Chettri believes that many residents should take this as a sign, especially for potential investors, as he believes that the high property demand has yet to be satisfied with enough supply.

On October 4^th, Chevrolet transforms Yonge-Dundas Square with exciting events and entertainment all day long.

Experience the electrifying Voltage lightning display and the 2012 Chevrolet Volt, the electric car that goes farther.  Check out the Volt MY DRIVE app, and then get in and take a Volt for a test drive.

Need some help balancing work and life?  Take a lunch-time break at the Chevrolet Orlando Stage with our three life experts.  CityLine’s Nanny Robina whips up dinner for four in seven minutes.  Erica Ehm from YummyMummyClub.ca talks about her family trip to Orlando in an Orlando, with tips to help you cope on those long drives, and Wendy Woods helps you relax and have fun with Laughter Yoga.

Plus, you might win entering the Orlando Parking and the Orlando Packing challenges.

Get into the 2012 Chevrolet Sonic.  It’s fun, turbocharged.  Get inside a Sonic and mash up your favorite tune with a mix from world-renown DJ Dopey.  Watch as Toronto Graffiti artist SKAM creates a 40’ work of art, live throughout the day.

And then at 7:30, join us for a free concert with FITZ AND THE TANTRUMS, live on stage.  Come to Yonge-Dundas Square on October 4^th, and text for a chance to win a 2012 Chevrolet Sonic to be given away during the FITZ AND THE TANTRUMS concert.

Test drive Sonic, Orlando and Volt, at Yonge-Dundas Square on October 4^th, have fun, and see how Chevrolet is Driving Our World Forward.

Debanshu Majumdar, Regional Head - Americas answers the press questions as Sudhesh Giriyan, Vice President Xpress Money listens intently

2011 has been a “very very important year” for Xpress money, said Sudhesh Giriyan, Vice President Xpress Money at Xpress Money launch ceremony in Toronto. With 35,000 locations in India, Xpress money is making its mark both in the corporate world of money transfers and at individual level.

It distinguishes its services from its competitors in a variety of different ways:

One, the text message is sent to the recipient the moment funds are transferred.

Two, the funds are instantly available

Three, there is no charge in case of cancellation

Four, network of strong and reliable partners in South Asia

Five, strong IT capability, and,

Six, superior customer service.

Xpress Money charges modest $8 to send money to India ($8 fee is the starting off fee) and $0 to send money to Pakistan.

While people may get unsettled when asked to provide detailed documentations to send money overseas from Canada, Mr. Debanshu Majumdar, Regional Head Xpress Money says that Xpress money will be compliant with all the laws the Canadian legislators have put in place.

With uncertain global climate, Canadian governments at all levels are trying hard to create business friendly environment in Canada. With its plans to spread its network across GTA, Montreal and Vancouver, Xpress Money will undoubtedly create jobs in Canada. It plans to have 150,000 active locations. Some of these locations will operate in Canada. It’s vision is to have Xpress Money agent at every 2 kilometers. Xpress money will also be launching an online money transfer system from Canada as early as November 2011. Canada will be the first country to offer Xpress Money online service.

Mr. Giriyan noted that 4 per cent of India’s GDP is contributed by Indian Diaspora living abroad. He stated that Canada is a premier market as the Indian Diaspora is strong and viable in Canada.

Here in Canada, Mr. Majumdar says that they have outreached to organizations like Indo Canada Chamber of Commerce, Canada Pakistan Business Council and other South Asian organizations.

That’s why 15/8 is a good time to think, ponder, be aware of your rights as a citizen of this great nation. We can overcome every hurdle, fight back every impossible odd if we cherish and insist on the freedoms we still have. For me, they rank way, way ahead of patriotism. Let us build on them.

I was born into freedom, grew up with it. So you must forgive me if I am not particularly hostile towards the British who ruled over us till 15/8 1947. You must also forgive me for not hating the Pakistanis as much as I am expected to because I never watched India being sliced into two by Jinnah’s machinations or Gandhi’s indifference, as others claim. I am a child of freedom. Not colonialism. Nor the Partition of India.

For me and millions of Indians, freedom means everything. We love asserting ourselves, even when we are in the wrong, and refuse to be cowed down by truth or fear. That’s why we chose democracy. It gave us the right to speak out without fear. And every now and then, when elections are held in different parts of India, we are surprised by the courage and wisdom of the voters. No Government, no political party, no leader has ever survived by underestimating the electorate. We saw the humiliation of Indira Gandhi in the polls, even after she won the only full fledged war this nation has ever fought. And that was because she imposed an Emergency to curb our freedoms. It destroyed her credibility. Not only was the Congress chucked out of power but she lost her own seat in Parliament to a complete crackpot called Raj Narain.

Having lived with freedom all of my life, I am surprised to find it under so much threat today. No, I am not particularly surprised when Governments try to curtail our freedom. That’s expected. Most Governments use every pretext, from national security to public weal, to try and curb our rights. Faith, caste, regional identity, developmental goals, everything is grist to the mill. The assertion of who we are is constantly at odds with what the State wants us to be. Today, for all practical purposes, each of us is just a PAN number who must be maximally taxed at every point of transaction. Soon each of us will have a UID number, our phones will be tapped, our emails read, our chats followed, our choices questioned, our rights curbed. The almighty State, run by goons, thugs and petty thieves, will become even mightier. Even though some of its most august stakeholders may be locked up in Tihar and a thick cloud of doubt and suspicion overhangs the rest.

The fact that we allow such people to rule over us has emboldened others to attempt similar tactics. The underworld gets murkier by the day and the thin dividing line between law breakers and law enforcers is disappearing. Everyone’s on the same side today, against you and I. On top of that, every kind of radical fringe wants to intimidate us, cull our freedoms, extort us. They are using the same methodologies as the State, the same arguments. They want to dictate to us what we must wear, what we can eat and drink, how we may pray to our different Gods, what books to read, what movies to watch, what art to appreciate and what to denigrate and vandalise.

This is what worries me. You can change Governments that intrude upon your personal freedoms. But you can’t change the way some people think. Burning books, harassing artists and film makers, vandalising libraries and art galleries, outlawing beer bars, beating up college girls who dress in jeans, banning alcohol for those under 25, the increase in honour killings, gender crimes, custodial deaths, and stupid, meaningless bomb blasts that kill innocent people are all different ways to attack our freedom. Now you can’t park your bike in Zaveri bazaar. You can’t go to watch a play or a movie without being frisked. You can’t wear what you want because some perverts believe it’s an invitation to rape. You can’t file your taxes and rest in peace because the system has decided to see every law abiding citizen as a likely tax evader. While the real crooks and criminals are safely ensconced within the ruling system, safe in the knowledge that power protects them.

That’s why 15/8 is a good time to think, ponder, be aware of your rights as a citizen of this great nation. We can overcome every hurdle, fight back every impossible odd if we cherish and insist on the freedoms we still have. For me, they rank way, way ahead of patriotism. Let us build on them.

Source: http://blogs.timesofindia.indiatimes.com/extraordinaryissue/entry/what-15-8-stands-for

The theories on international or domestic conspiracies are popular with the societies in decay that refuse to admit that something has gone wrong with the society. Such a mindset is inimical to developing autonomous capacity to address socio-economic problems.

Pakistan will celebrate 64^th Independence Day on August 14, 2011. This provides an opportunity to large number of Pakistanis living in Pakistan or abroad to undertake a dispassionate analysis of how and why British India was divided and Pakistan was established as a sovereign and independent state.  There is a divergence of opinion on this issue. The same can be said about the inability of Pakistani state and society to address the socio-economic problems of its people.  The analysts put forward different explanations that often reflect a partisan view of the situation.

An important section of public opinion links Pakistan’s establishment and current problems to the clash of political and economic interests between the Hindus and the Muslims. They highlight more what they call the exploitation of the Muslims by the Hindus of British India. The emphasis is on contradictions between the Muslims and the Hindus which, in their view, is still relevant to addressing the current India-Pakistan relations.

The exploitation theme can be referred to as a factor in the history of Pakistan which has greater appeal for those who experienced the pre-independence society.  However, this argument loses much of its appeal to the second and the third post-independence generation that is experiencing exploitation by their countrymen, invariably the Muslims.   Unless their problems and concerns are addressed, their attitude towards that state and society is going to be influenced more by their own experience rather than the historical narratives of exploitation of the Muslims by the Hindus in the pre-independence period. Pakistani state must address their concerns and problems so that they identify closely with the state.

There are those who track the current problems to the establishment of Pakistan and the decisions made in the early years of independence.  They argue that the establishment of Pakistan was a political choice which was adopted without giving a serious thought to what was to be done subsequently.  Many decisions were made on the spur of the moment rather than taking into account the long term implications. For example, some analysts track the rise of religious extremism in Pakistan to the passing of the Objective Resolution (March 1949) that incorporated Islamic identity in the political and constitutional arrangements for the future. This is viewed by many as yielding to the pressure of Islamic clergy which the later used subsequently to justify their demand for a purely religion based political order.

The Objectives Resolution was not the beginning of emphasis on Islam but a natural corollary of the employment of Islamic identity, culture and history for political mobilization and identity formation by the All India Muslim League in the pre-independence period.  The framers of the Objectives Resolution were convinced that the modern notion of state and democracy can be combined with the teachings and principles of Islam that were viewed as the ethical foundation of the Pakistani society rather than a set of punitive and regulative injunctions.

All Pakistani constitutions direct the state to “ENABLE” the Muslims to lead their lives in accordance with the teachings and principles of Islam.  Another constitutional stipulation emphasizes that there will be no law contrary to the principles and teachings of Islam because the latter were accepted as the ethical source of guidance for the state and society.

The basic change in the role of the state from an “Enabler” to “Enforcer” of Islam came during the military rule by General Zia-ul-Haq who began to enforce Islam through state orders and machinery for achieving his domestic and foreign policy agenda. Until 1977, there is only one instance of such enforcement; the state and society generally pursued a moderate disposition towards religious issues.

The current religious and cultural intolerance and militancy is the product of the policies adopted since 1977, especially from 1979 onwards when Zia-ul-Haq embarked on enforcement of Islam to the satisfaction of orthodox and conservative Muslim clergy. It is very difficult to draw the conclusion that if the founders of Pakistan had sought a new basis of identity for Pakistan after independence Pakistan would have been free of the on-going extremism and militancy.

Another explanation talks of external conspiracies against Pakistan for undermining the pre-dominantly Muslim state and society. This discourse views all domestic and foreign policy developments as a function of religion. As the non-Muslim world is arrayed against Islam, there is a global conspiracy against Pakistan.  This means that there is nothing wrong with Pakistan and Pakistanis.

A variant of the conspiracy explanation is the well-known statement that Pakistan has all the needed natural, agricultural and human resources but the leadership is unable or unwilling to use them for the welfare of people or there is some international conspiracy for dissuading them from benefiting from these resources.

The theories on international or domestic conspiracies are popular with the societies in decay that refuse to admit that something has gone wrong with the society. Such a mindset is inimical to developing autonomous capacity to address socio-economic problems.

In the present day world, no matter how a country has come into existence and no matter what mistakes its rulers have made in the past, it cannot overcome its problems without acquiring modern knowledge and technology.   This needs to be coupled with unemotional reflection on the problems or failures. Pakistan falters on both counts and a large number of people are not willing to pay attention to improving domestic economic and political situation. They have developed the false notion of some “savior” coming forward to solve their problems.

By Dr. Hasan Askari

Lahore

“There are many reasons to believe that a significant portion of what is perceived to be buying by offshore investors is, in fact, driven by Chinese immigrants that are integrated into the community but still maintain strong links to mainland China, with many residing and working in China while their family establishes roots in B.C.”

The Canadian housing market is becoming highly segmented and multi-dimensional which is making traditional measures, like average prices, increasingly irrelevant in gauging the health and state of the sector, finds a new report from CIBC World Markets Inc.

“Glancing at popular metrics such as the price-to-income ratio or the price-to-rent ratio, it is tempting to conclude that the housing market is already in clear bubble territory and a huge crash is inevitable,” writes Benjamin Tal, Deputy Chief Economist at CIBC, in his latest Consumer Watch Canada report.

“Tempting, but probably wrong. When it comes to the Canadian real estate market at this stage of the cycle, any statement based on average numbers can be hugely misleading. The truth is buried in the details—and there the picture is still not pretty, but much less alarming.”

He notes that while the average house price in Canada rose 8.6 per cent on a year-over-year basis in May, that number slows to 5.6 per cent if you take Vancouver out of the picture. Remove Vancouver and Toronto and the average price increase drops to 3.7 per cent.

According to the information provided by Landcor, foreign money accounted for only 2.6 per cent of all sales during the same period. However, Mr. Tal believes that could be a serious underestimate, as it is based on where property tax assessments are mailed, and would exclude offshore buying on behalf of children or other local proxies. “There are many reasons to believe that a significant portion of what is perceived to be buying by offshore investors is, in fact, driven by Chinese immigrants that are integrated into the community but still maintain strong links to mainland China, with many residing and working in China while their family establishes roots in B.C.”

Mr. Tal feels the price correction in Canada will be gradual as the two key triggers for a price crash – a significant and quick increase in interest rates and/or a high-risk mortgage market that is very sensitive to changes in economic factors – are not at play in Canada.

“In Canada, a sharp and brisk tightening cycle is unlikely. The market expects a gradual increase in short-term rates in the coming years. The rising number of mortgage holders that carry a variable rate mortgage will be the first to feel the pain. But if history is any guide, they will return quickly to the comfort of a five-year fixed rate the minute the Bank of Canada starts hiking.”

He also believes that the country is in relatively good shape when assessing the two sub-segments of the mortgage market that traditionally account for most defaults: mortgage holders that carry a debt-service ratio of more than 40 per cent and those with less than 20 per cent equity in their house.

Just over six per cent of households have a debt service ratio of more than 40 per cent—a number that has risen by a full percentage point since 2008. “However, this ratio is still well below the ratio seen in 2003, when the effective interest rate on debt was more than a full percentage point higher, and no correction in house prices ensued,” adds Mr. Tal.

“All other things being equal, even a 300-basis-points rate hike by the Bank of Canada would take this ratio to only just over eight per cent. Not surprisingly, Vancouver has the highest ratio of households with high debt-service ratio, followed by Toronto.”

A little more than 17 per cent of the Canadian residential real estate pool is in properties with less than a 20 per cent equity position, a number that has been rising over the past few years. More than 80 per cent of households with less than a 20 per cent equity position are first time buyers.

“Digging deeper and looking at the households with both low equity positions and high debt-service ratios, we found that this fragile segment of the market accounts for only 4.6 per cent of total mortgages—a number that has been on an upward trend over the past few years,” says Mr. Tal. “Shock the system with a 300-basis-points rate hike and that number would rise to a still-tempered 6.5 per cent. Historically, even in that group, the default rate has been well below one per cent. Thus, short of a huge macro shock, there does not appear to be the risk of large scale forced selling that would typically be the trigger for a precipitous plunge in the national average house price.

“As a result, while house prices are likely to adjust as interest rates eventually climb, the national pace of any correction is likely to be gradual. That could still entail a period in which housing underperforms other assets as an investment class, until rising incomes and a tame price trajectory bring the market back to equilibrium.”