What does Family attribution rules mean?
There is a example:
Kim owns 100% of a corporation. Kim’s son, John, is married to Susan. Kim’s ownership is attributed to John, and he’s treated as owning 100% through attribution. John’s interest can’t again be attributed to his wife, Susan.
In tax purpose:
What does "attribution" mean? What does "John’s interest can’t again be attributed to his wife" mean?
please explain
What does Family attribution rules mean? :
Attribution rule created to prevent individuals in higher tax brackets from transferring assets to family members who are taxed at lower marginal rates in an attempt to evade being taxed at their own high rate. These rules were implemented to close a loophole in the Canadian tax system.
What does "John’s interest can’t again be attributed to his wife" : It means John cant transfer his assets to his wife to avade tax.
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