New Rules Relating to Income Splitting

Posted on December 21, 2017

On December 13, 2017, the Federal Government released its rules relating to income splitting.

The new rules will limit the ability of owners of private corporations to split income with family members in most circumstances. In general, beginning on January 1, 2018, unless a spouse or child works an average of more than 20 hours per week in the business, it is unlikely that the business owner will be able to split income with the family members.

The new rules will make tax planning more complex. We will keep you informed as more information becomes available and as we develop tax planning opportunities for you relating to the above tax changes.

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David Bruce and the whole team at Bruce and Monahan have always provided excellent advisement and services for me and for my company. Being a young entrepreneur with little time and limited accounting knowledge, David was paramount in helping me setup my business structure and accounting practices correctly from the beginning. I would recommend David and his team to anyone who is starting or has recently started a business. His effort and advice has allowed me to focus more of my time on growing my businesses.