This article will explain what tax on split income (TOSI) rules are. Specifically, we’ll look at how TOSI rules affect your ability to pay dividends to your spouse and adult family members.
After reading this article, you’ll understand what a holding company is and when you should consider using one. We’ll also look at some holding company examples to explain why someone would incorporate a holding company in Canada. At the end, we talk about the disadvantages of incorporating a holding company in Canada.
If you own a business through a corporation, you have the ability to pay yourself a salary or dividends or a combination of both. This article will look at the difference between the two methods and the main advantages and disadvantages of each. We will also see some common scenarios for when a business owner may choose one method over the other.