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New Member
posted Oct 30, 2019 10:28:41 PM

Can I transfer a percentage of T5 slip dividends to my spouse from a business that only I run?

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1 Best answer
Level 13
Oct 30, 2019 10:28:42 PM

As of 2018, dividends paid to family members of the owner of a Canadian private corporation will be taxed at the highest marginal tax rate, which could be as high as 40% in some provinces. As a result, there is no longer a tax benefit from dividend sprinkling. Unless the shareholder receiving the dividend can show specific labour or capital contributions to the business’s operations.

1 Replies
Level 13
Oct 30, 2019 10:28:42 PM

As of 2018, dividends paid to family members of the owner of a Canadian private corporation will be taxed at the highest marginal tax rate, which could be as high as 40% in some provinces. As a result, there is no longer a tax benefit from dividend sprinkling. Unless the shareholder receiving the dividend can show specific labour or capital contributions to the business’s operations.