If All of the Income Earned by a Business Is

question 69

True/False

If all of the income earned by a business is active business income, flowing the income through a Canadian controlled private corporation, as opposed to earning the income in an unincorporated business, will always provide a tax savings.

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Definitions:

Oxidize

A chemical reaction in which a substance loses electrons or hydrogen, often involving the addition of oxygen or the removal of hydrogen.

Muzzle Flash

The visible blast of flame and light produced at the muzzle of a firearm when it is fired, caused by the rapid combustion of propellant.

Gunpowder

An explosive mixture of sulfur, charcoal, and potassium nitrate that historically revolutionized warfare.

Oxidation

Oxidation is a chemical reaction that involves the loss of electrons by a molecule, atom or ion.