Are we affected by the Tax on Split Income if we receive a salary and dividends from our farming corporation?
We are retired from farming. The corporate income is from land leases and oil revenue. We have equal shares in the corporation and operate it together. We take a salary and dividends in equal amounts.
Are we affected by the Tax on Split Income if we receive a salary and dividends from our farming corporation?
If you both were active in the business and the
amount of income for each person is reasonable in proportion to the
work/contribution that they put in, then it’s likely that the Tax on Split
Income doesn’t apply to you. However, it would be a good idea to contact the
CRA and double check with them. If you are in Canada or the United States, you
can call the CRA at 1-800-959-8281. Here are more ways to contact the CRA:
https://www.canada.ca/en/revenue-agency/corporate/contact-information/telephone-numbers.html
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