5 October 2018 APFF Roundtable Q. 12, 2018-0768831C6 F - Tax on Split Income and Partnership -- summary under Subsection 96(1.8)

CRA confirmed that the tax on split income is inapplicable to a family partnership that invested in the stock market where the children had not contributed anything to the partnership or participated in the trading decisions or other management decisions, given the exclusions from “split income” for dividends on shares listed on designated stock exchanges and for taxable capital gains realized on such shares. However, CRA went on to indicate that given such lack of contribution of the children, it would review the application of inter alia ss. 103(1). 103(1.1), 74.1 and 96(1.8).