Tax Integration
The Canadian tax system is based on the principle of integration. The following should attract the same tax:
- income earned by a corporation and distributed to shareholders as dividends, and
- earning the income directly
{personal tax + corporate tax} is approximately equal to {tax the shareholder would pay by earning income directly}
Dividend Tax Credit System
Most taxable dividends received by individuals are eligible for a tax credit to adjust for tax already paid by the corporation.
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page revision: 3, last edited: 20 May 2007 01:02
