The Quebec government is following Ottawa’s lead and will allow senior couples to split retirement income at the beginning of 2007.

It is expected to cost the province $106 million annually. About 370,000 retired couples will each save $286 on average every year.

In October, the federal government announced it would allow income splitting at the same time it cracked down on income trusts.

Income splitting will automatically be changed in other provinces, but Quebec is the only province that collects its own taxes.

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