OBJECTIVE:
The full-day seminar(offered in two sessions)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.

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. 

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

LEARNING OUTCOMES:
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, and
• recognize new potential strategies for income splitting.

CONTENT:

•  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

PREREQUISITES:
General income tax knowledge, both personal and corporate
Prior experience with income splitting or remuneration strategies for owners of private corporations would be helpful, although not critical

COURSE LEADER: ALEX GARBER, CPA, CA, MTax