If a 22 year old Specified Individual receives dividends from a private company in which he owns 20 percent of the fair market value of the company shares and 20 percent of the voting shares, the dividends will not be subject to the Tax On Split Income.

Question

Quizplus · Accepted Answer

The Tax On Split Income rules apply to individuals under the age of 18 and to individuals who receive certain types of income from a related business or partnership. Even if the specified individual owns voting shares, if the dividend income is considered to be from a related business, it may still be subject to the Tax On Split Income rules.

If a 22 Year Old Specified Individual Receives Dividends from a Private