Which of the following individuals would likely be exempt from the TOSI rules on income received from a family business?

Question: Which of the following individuals would likely be exempt from the TOSI rules on income received from a family business?

Answer options:

• A 19-year-old child who works 15 hours per week in the business.
• A spouse who makes no direct contributions but attends annual meetings.
• An 18-year-old child who received dividends but does not work for the business. ✅ A 24-year-old child working full-time (30+ hours/week) in the business.

Correct answer: A 24-year-old child working full-time (30+ hours/week) in the business.

Explanation: Under the TOSI rules, an individual is generally exempt if they are 18 years of age or older and contribute on average 20 hours per week during the year or any five prior years to the related business. A 24-year-old working full-time would meet this criterion for substantive contribution.