September 28, 2022 – Attribution of Pre-Tax Corporate Income

“In L.M.P. v. M.D.P, 2021 ONSC 3577 (Ont. Sup. Ct.) at para. 58, MacPherson J. reviewed the case law and concluded that the considerations and questions to take into account by the Court when determining whether to exercise its discretion to attribute pre-tax corporate income can be condensed as follows:

a.   does the Respondent have control over dividend declarations?

b.   is there a business reason for retaining the earnings?

c.   should the court exercise its discretion and attribute pre-tax corporate income?”

Christodoulou v. Christodoulou, 2021 ONSC 6538 (CanLII) at 58