Income Tax — Income Splitting, A New Era

EVENT DESCRIPTION

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NOTE: This course description has been revised and reflects updates for 2022. If you have any questions, please contact pdevents@cpaontario.ca

SCHEDULE

Overview

This full-day seminar covers the tax benefits of income splitting, provides a detailed review of relevant income tax legislation, including the expanded TOSI rules, and reviews remaining opportunities to accomplish income splitting. Participants will have an opportunity to apply the tax legislation to various examples/case studies, to simulate practical real-life situations.

Course Description

Families that function as a single economic unit can benefit from tax savings if income can be taxed in the hands of lower-income family members. This is referred to as income splitting. The Income Tax Act contains several measures related to income splitting; and while some are permissive, most are restrictive. The latest of these - the expanded Tax on Split Income” ("TOSI") rules - became effective in 2018, and their implications are far-reaching and punitive. Consequently, many former structures and plans will no longer achieve the intended results and may trigger adverse income tax consequences. In addition, some situations may be caught when income splitting was not an objective.

Learning Objectives

By the end of this course, participants will be able to:

• Apply various "traditional" rules in the Income Tax Act that operate to specifically allow or prevent income splitting
• Apply the recently-expanded Tax on Split Income ("TOSI") legislation to different situations
• Identify former income splitting techniques that no longer achieve intended results
• Recognize new potential strategies for income splitting

Seminar Content

Topics covered in this course include:

• Introduction/overview of income splitting
• Traditional rules that impede income splitting
• Existing rules that specifically allow income splitting
• Expanded Tax on Split Income ("TOSI") legislation
• Examples for application of the expanded TOSI rules - fundamental and advanced
• CRA commentary on expanded TOSI legislation
• Strategies for successful income splitting

Applicable To

CPAs — with a solid knowledge of income tax basics — who advise individuals, professionals or business owners on matters related to income splitting.

PRICING

Status: Registration closed on May 28, 2023

LOCATION

Online

SPEAKER(S) BIO

Alex Garber, CPA, CA, MTax has been in public practice since 2004, focusing primarily on income taxation for Canadian owner-managed businesses and their shareholders. Alex also teaches at York University, at the CPA Canada In-Depth Tax Course and at the PEP program for aspiring CPA students. Alex started his career at Deloitte and he's currently working at Fuller Landau LLP in Toronto.