The Canadian tax system practices integration between corporations and individuals.Using the data in Table 1 and assumed rates,illustrate and explain the concept of integration.
Table 1

Question

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The Answer is *Rounded
The concept of integration illustrated here shows that as income flows through a corporation and ultimately to an individual,the total tax paid on that income is relatively equivalent to the amount that the individual would have paid had he/she received the income directly,rather than through a corporation.Thus,double taxation is avoided.[However,this example is based on set tax rates which may differ in varying circumstances,and double taxation may occur in some scenarios.]

The Canadian Tax System Practices Integration Between Corporations and Individuals