income shifting

income shifting definition - business

income shifting

Transferring income from one person to another person, who pays taxes at a lower rate. For example, a parent might transfer income-earning assets to a child who is taxed at a lower rate than the parent. Also called income splitting.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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