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attribution rules

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Financial Dictionary

Attribution Rules

A set of rules created by Canada Customs and Revenue Agency (CCRA) that prevents investors from transferring assets between family members with the intention of avoiding taxes.

Investopedia Commentary

The goal of these rules is 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.

Related Links

Five Tips for the Tax-Smart Investor

See also: CCRA, Income Tax, Tax Bracket, Tax Evasion, Tax Table

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