"Decision-Trees" to Act as a Guideline to Complex Legislation


On December 13, 2017, federal Finance Minister Bill Morneau released updated legislation relating to “income sprinkling” by business owners and their families. The new legislation, which came into effect on January 1, 2018, is still very complex and includes four different sets of rules depending on the individual’s and/or their spouse’s age.

To assist you in navigating these rules, Assante Wealth Management has prepared a set of “decision trees” that can be used as a guide to determine if the new tax on split income (TOSI) rules may apply.

If TOSI does apply, the income will be taxed to the recipient of the income at their highest marginal tax rate. Please note, these “decision trees” were designed to simplify the rules for discussion purposes and should be used as guidance only. There could be additional exemptions relating to inherited property that are not reflected in this guide, and individuals should seek confirmation from their tax advisor on their specific situation.

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