Tax on Split Income (TOSI)

Taxation on Split Income (TOSI) is a comprehensive course designed to help accounting and tax professionals understand, interpret, and apply one of the most complex areas of Canadian personal taxation. The TOSI rules significantly restrict income splitting with family members and can trigger taxation at the highest marginal rate when specific conditions are not met. For practitioners advising private corporations, family businesses, trusts, and high-income individuals, a clear grasp of these rules is essential. This course begins with the legislative foundation and policy intent behind TOSI, including its evolution from the original kiddie tax regime to the expanded framework introduced in 2018. Participants will explore the core definitions that determine how the rules apply, such as specified individual, source individual, related business, and split income. The course carefully explains how age, ownership structure, level of participation, and the nature of income influence whether TOSI applies. A significant focus is placed on the exclusions and exceptions built into the legislation. Learners will examine excluded amounts, excluded businesses, excluded shares, safe harbour capital returns, and the reasonable return test. The course clarifies the five-year active engagement rule, the 20-hour per week benchmark, and the ownership thresholds required to avoid unintended tax consequences. Through practical examples and real-world scenarios, the course demonstrates how TOSI applies in common planning structures, including private corporations, partnerships, family trusts, sidecar companies, and intergenerational transfers. It also addresses tax rate implications, attribution considerations, compliance requirements, and planning strategies that can help mitigate risk while remaining within legislative boundaries. Delivered online and self paced, this course includes structured video instruction supported by downloadable reference materials, practical case studies, and knowledge checks to reinforce understanding. It is designed to provide clarity, confidence, and practical insight for professionals navigating personal and family tax planning in Canada. Taxation on Split Income (TOSI) forms part of the Canadian Tax Mastery Certificate, the Certificate in Personal and Family Taxation, and the Estate and Succession Planning Certificate, contributing to a structured path of advanced professional development.