The Canadian tax system practices integration between corporations and individuals in order to address and reduce double taxation.The following information has been provided for analysis purposes:
$$\begin{array} { | l | r | }
\hline \text { Corporate income } & \$ 200,000 \
\hline \text { Non-eligible dividends paid to shareholder } & 174,000 \
\hline \text { Corporate tax rate } & 13 \% \
\hline \text { Personal tax rate } & 50 \% \
\hline \text { Marginal non-eligible dividend tax rate } & 43 \% \
\hline
\end{array}$$
Required:
Using the data provided, demonstrate numerically the concept of integration.

Question

The Canadian tax system practices integration between corporations and individuals in order to address and reduce double taxation.The following information has been provided for analysis purposes:
 $$\begin{array} { | l | r | } 
\hline \text { Corporate income } & \$ 200,000 \
\hline \text { Non-eligible dividends paid to shareholder } & 174,000 \
\hline \text { Corporate tax rate } & 13 \% \
\hline \text { Personal tax rate } & 50 \% \
\hline \text { Marginal non-eligible dividend tax rate } & 43 \% \
\hline
\end{array}$$
Required:
Using the data provided, demonstrate numerically the concept of integration.

Quizplus · Accepted Answer

The Answer of The Canadian tax system practices integration between corporations and individuals in order to address and reduce double taxation.The following information has been provided for analysis purposes:
 $$\begin{array} { | l | r | } 
\hline \text { Corporate income } & \$ 200,000 \
\hline \text { Non-eligible dividends paid to shareholder } & 174,000 \
\hline \text { Corporate tax rate } & 13 \% \
\hline \text { Personal tax rate } & 50 \% \
\hline \text { Marginal non-eligible dividend tax rate } & 43 \% \
\hline
\end{array}$$
Required:
Using the data provided, demonstrate numerically the concept of integration.

The Canadian Tax System Practices Integration Between Corporations and Individuals