Effective from January 1, 2018 and subsequent taxation years, Finance is moving forward on restricting income sprinkling for private corporations as part of its commitment to tax fairness. Prior to the introduction of these rules,business owners could potentially redirect their income to family members that pay a lower rate of income taxes. As a result of these changes, new rules have been introduced to determine whether a family member is significantly involved in business, and thus is excluded from potentially being taxed at the highest marginal tax rate (known as the tax on split income or TOSI). The changes include a new set of tests to determine whether recipients of such income will be subject to the TOSI rules. For more information on these rules or to determine if you will be impacted as a result of these changes, feel free to contact us.