How Avert Offshore Tax Evasion - A 3 Step Test
95.00 €
Published date: 02/04/2025
- Location: 80740-650, Curitiba, Nunavut, Canada
S is for SPLIT. Income splitting is a strategy that involves transferring a portion of income from someone who is in a high tax bracket to someone who is within a lower tax clump. It may even be possible to lessen tax on the transferred income to zero if this person, doesn't have other taxable income. Normally, the other person is either your spouse or common-law spouse, but it can also be your children. Whenever it is possible to transfer income to someone in a lower tax bracket, it must be done. If major difference between tax rates is 20% your family will save $200 for every $1,000 transferred into the "lower rate" partner.
Learn important concepts before referring on the tax rate to avoid confusion and potential errors in your computation. Generally you must find out is your taxable income.
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