Which of the following scenarios is least likely to trigger the attribution rules for income splitting?

Question: Which of the following scenarios is least likely to trigger the attribution rules for income splitting?

Answer options:

• A husband loans $50,000 to his wife for investment purposes at 0% interest, and she generates investment income from it.
• A father gifts $100,000 to his 17-year-old son, who invests it and earns interest income. ✅ A grandmother gifts $20,000 to her 25-year-old granddaughter, who invests it in a GIC.
• A husband transfers shares of a private company to his wife, and she receives dividends from those shares.

Correct answer: A grandmother gifts $20,000 to her 25-year-old granddaughter, who invests it in a GIC.

Explanation: The attribution rules generally apply to transfers or loans between spouses (or common-law partners) and to minors. Gifting to an adult child (age 18 or older) or grandchild typically does not trigger attribution rules for income earned on the gifted property.