Income tax Dates
You'll need the following information to do the calculation:
- company's net total income before donations for the company's income year
- total dividends paid by the company for the company's income year
- voting interests held in the company on the last day of the income year by you and/or your dependent children
- total number of company shares on the last day of the income year.
Calculation for your voting interests
(your voting interests ÷ total voting interests) × (company's total income − dividends) = attributed income
For Working for Families Tax Credits and student loans, you also have to include the voting interests of dependent children in the company.
The formula for this is:
(your children's shares ÷ total company shares) × (company's total income - dividends) = children's attributed income
If there are multiple companies
If you're a major shareholder in more than one close company, you'll need to do separate calculations for each company and combine the attributed income amounts for you and your dependent children.
You should also leave out any fixed-rate shares from the calculations.
For student loan and Working for Families purposes, the voting interests of dependent children are divided equally between you, your spouse or partner and other principal caregivers if they are major shareholders in the company.
Jasmine receives Working for Families for her 2 children and holds 60,000 of the 100,000 voting interests in the company. Her 2 children hold the other 40,000.
The company made a profit of $90,000 and did not pay any dividends.
Jasmine's attributed income calculation for her shares
(60,000 ÷ 100,000) × ($90,000 -$0) = $54,000
Jasmine's attributed income calculation for her dependent children's shares
(40,000 ÷ 100,000) × ($90,000 − $0) = $36,000
Renee receives Working for Families payments and has a student loan. She holds 25% of the voting interests in a private company with 2 other shareholders.
The company made a profit of $200,000 and paid dividends of $50,000.
Renee's attributed income calculation
25% × ($200,000 − $50,000) = $37,500