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Tip 6 – Tax on Split Income | Tax on Passive Income

This note continues Tax Principal Raffaele Ruberto’s ten-week Friday Tax Tip series, helping business owners and their family members mitigate the new Tax on Split Income (“TOSI”) and upcoming Tax on Passive Income (“TOPI”) rules.

As always, if there are any topics you would like addressed, or have specific questions you need answered, just send an email to

Tax on Split Income | Tip 6

Happy 2019!

The transitional period is now over. Individuals receiving a dividend must be compliant with the new rules as at the time of dividend payment.

Now is a good time to review your corporate structure and reorganize your shareholdings as needed to allow income sprinkling with your family members.

Please contact SB Partners to learn more, or to discuss any of our signature TOSI Solutions.

Tax on Passive Income | Tip 6

Welcome to the new TOPI environment!

The new rules restrict recovery of the refundable dividend tax on hand (“RDTOH”) account in certain situations. Pay particular attention to where RDTOH is present in one company while the general rate income pool (“GRIP”) is present in another. It is beneficial to ensure one entity has both the RDTOH and GRIP balance prior to the new TOPI rules taking effect.

Please contact SB Partners to learn more, or to discuss a variety of our signature TOPI Solutions.

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