Monthly Archives August 2018

Income Splitting for Professionals

On June 25th 2018 the government passed Bill C-74. This legislation brings new rules on income splitting and limits access to the small business deduction where passive investment income exceeds $50,000 a year. Below is a summary on the proposed income splitting tax rules (TOSI rules) for illustration and discussion purposes. 

For most incorporated physicians, there are two parts to what they refer to as “income"; salary and dividends.