The Quebec government plans to change the eligibility age to 65 for retirement income splitting between spouses to improve the fairness of the tax system.
It unveiled the plans in its budget on Wednesday.
The budget notes that a significant share of taxpayers who benefit from retirement income splitting before age 65 continue to hold a job and earn employment income while they receive a pension from the registered pension plan (RPP).
Currently, more than 70% of those benefiting from retirement income splitting who are under age 65 are in this situation.
“This situation creates tax unfairness towards other workers who do not receive retirement income before age 65 and cannot split their employment income,” states the budget.
The change will affect roughly 85,000 households in Quebec that currently receive a tax benefit estimated at $52 million for fiscal year 2014-2015.
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