Which of the following statements accurately describes the tax treatment of Canadian corporations?
A)Public and private Canadian corporations are eligible for the small business deduction.
B)Public and private Canadian corporations are eligible for the general rate reduction.
C)Public corporations are granted beneficial tax treatment on the first $500,000 of business income.
D)Canadian controlled private corporations recognize the general tax reduction on all business income.

Question

Quizplus · Accepted Answer

Public and private Canadian corporations are eligible for the general rate reduction, which applies to all Canadian corporations, reducing the federal corporate income tax rate on their taxable income. The small business deduction, which provides a lower tax rate on the first $500,000 of active business income, is specifically available to Canadian-controlled private corporations (CCPCs), not public corporations.

Which of the Following Statements Accurately Describes the Tax Treatment