As a result, the top Ontario marginal tax rates for 2012 and 2013 on different types of income are as follows:
The new individual "top" Ontario tax rate will be applied to income of inter vivos trusts and split income (i.e., the "kiddie" tax will be applied at this new "top" rate). In the case of donations, the highest percentage that will apply to donations in excess of $200 will remain at 11.16%. Finally, as a bit of a surprise, this "temporary" new tax bracket threshold of $500,000 will be subject to indexation for years ending after 2012.
For more information, contact your KPMG adviser.