After months of suspense, the Department of Finance released revised draft legislation on December 13, 2017 regarding the change to income sprinkling and tax on split income (“TOSI”). The government has provided certain “bright-line” tests that will allow income sprinkling with family members, subject to a number of conditions. We have attached the Department of Finance releases. For more immediate information, please see the following link https://goo.gl/W2UFGF
The Department of Finance has not released draft legislation regarding passive income. This information is not expected until the 2018 Budget.
In light of this update, we are reviewing the changes to advise our clients on the potential impacts, limitations and planning opportunities available. We will be releasing a newsletter shortly with a summary of the changes.