Monthly Archives August 2018

Income Splitting for Professionals

Tax On Split Income for Incorporated 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. 

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