Some basic tax planning - income splitting

I met with an entrepreneur yesterday - great business - she's an owner-manager. Her business is picking up and the husband will now join her to expand into new market. After reviewing her minute book, I explained her that she had only one class of share. I further explained her that in order to maximize her income tax splitting, it would beneficial to change her share structure and to create several classes of shares. Her husband will acquired shares of a different class. The rational is that she would able to split the income between her husband and her by declaring a dividend to for each class of shares. By way of example, let's say that company XYZ have $100,000 in retained earning at the end of the year, the company could pay a dividend of $100,000 to the wife. However, with that new structure, the company could declare a dividend of $70,000 to the wife and $30,000 to the husband. Obviously, the income taxes to be paid would be quite different in these 2 scenarios. Please keep in mind that some special rules exist, such as the attribution rule, but if planned in conjonction with your accountant, these kind of strategy are more than worth it. I recommend you to consult your accountant and your lawyer to learn more.