{'fraction_non_alphanumeric': 0.016741071428571428, 'fraction_numerical': 0.004464285714285714, 'mean_word_length': 4.571428571428571, 'pattern_counts': {'":': 0, '<': 0, '<?xml version=': 0, '>': 0, 'https://': 0, 'lorem ipsum': 0, 'www.': 0, 'xml': 0}, 'pii_count': 0, 'substrings_counts': 0, 'word_list_counts': {'cursed_substrings.json': 0, 'profanity_word_list.json': 0, 'sexual_word_list.json': 0, 'zh_pornsignals.json': 0}}
Income splitting--a facet of tax planning.

Because of the progressive tax system in effect in Canada, whereby higher personal income is taxed at increasingly higher rates of tax, it is not surprising to find rules in the Income Tax Act which attempt to put a halt to income splitting arrangements. Nevertheless, some quite legal methods do exist to enable individuals in a high tax bracket to get income into a lower bracket by having it taxed in the hands of a family member with a lower rate oftax. In addition to the lower rates of tax, the availability of the $1000 interest, dividends and capital gains exemption should not go unnoticed. Some of the arrangements covered in this article include direct loans to spouse and children, the use of a holding company where the common shares are owned by a taxpayer's children and the establishment of a trust with minor children as beneficiaries.