Rules
Earned income (salary, business) is taxed individually – each spouse reports their own. Passive income (rent, interest, dividends) is generally attributed to the higher-earning spouse unless the assets were independently acquired. The ITA can challenge artificial income splitting arrangements.
Legitimate Planning
Each spouse can: operate their own business independently, hold investments in their own name (if genuinely purchased with their funds), and maximize their own pension contributions. Jointly-held property income is split 50/50 unless a different allocation is documented.
Important Note: The information on this website is for general informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor before making financial decisions.