As a Result of Several Anti-Avoidance Provisions of the Income

question 7

Multiple Choice

As a result of several anti-avoidance provisions of the Income Tax Act, property income shifted to a spouse or child in a lower tax bracket will typically

• A)be permitted in order to utilize the lower tax rate.
• B)be disallowed unless the child is under the age of 18.
• C)be attributed back to the transferor of the property or subject to the top personal tax rate.
• D)be attributed back to the transferor of the property or subject to the lowest personal tax rate.

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