Income splitting involves distributing income among family members, trusts, or various business entities to potentially benefit from lower tax rates or threshold amounts. This practice is commonly associated with filing joint returns for married couples but can also include giving income property to children or utilizing multiple trusts or business structures.
Stealth tax, also known as a hidden tax, is a tax whose incidence may not be immediately apparent to the taxpayer. These can be levied on goods at the wholesale level or through reduced tax allowances and adjusted thresholds.
