Tax on Split Income – Does it Apply to You?
As you are getting ready to file your personal taxes for 2018, prepare yourself for a new question to be asked by your accountants…does TOSI apply to you?
TOSI is a new acronym added to the tax lexicon in the past year as a result of the tax changes introduced by the government in 2017. TOSI stands for “tax on split income”.
Although TOSI is a set of complex labyrinth of rules that are very fact specific, it may apply to you if you received dividends, gains or interest from a business in which a person related to you is involved (because they provide services or own an interest in that business).
If TOSI applies, the amount should be reported separately on your tax return, as the affected amount will be taxed at the highest marginal tax rate (instead of at the normal graduated rates).
Do you have questions about TOSI or any other tax matters? Please contact us today!