So it was jarring when the federal government introduced new rules on
income splitting late last year, severely limiting small business owners' ability to include their family members' contributions in their tax calculations as of Jan.
Haq emphasised that
income splitting and base erosion would not be possible after the disclosure.
Income splitting.
Income splitting is a strategy in which income is shared so that it is taxed among several people.
Remember, this is the government that praised reservists, but decreased the budget dedicated to reservist pay, and shrunk their training budget to finance alternative initiatives like
income splitting --a $2,000 tax break for the wealthiest few.
This extra money served well for the Conservative government in paying down the deficit quickly, and give it as a sop of 2.5-billion tax break for some families by way of
income splitting.
Even Canada's last finance minister has recently questioned the fairness of
income splitting, the longstanding Conservative promise to introduce tax changes that primarily benefit families with non-working spouses.
Other tax advantages of incorporation can include
income splitting with family members if the regulating body for your profession allows them to be shareholders.
(30) Through this sort of
income splitting, a couple's combined income tax obligation could be reduced.
The benefits of
income splitting enjoyed by most married heterosexual couples via the joint return filing option is not generally available for same-sex partners on their federal returns.
Income splitting is perfectly legal, but you cannot just choose to share the rents.
