TOSI

Also written as tax on split income.

Definition

Tax on Split Income. Rules that apply the top marginal rate to income split to a related party from a private corporation, unless an excluded-amount exception applies.

Long reference

Handbook

Tax on Split Income (TOSI)

Citations, procedures, and worked examples for tosi.

Related terms

Salary vs dividends

The choice every 1-person corp owner makes: pay yourself via a T4 salary (creates RRSP room, CPP) or non-eligible dividend (no payroll admin, no CPP).

All terms More in Personal tax