An Individual Residing in Saskatoon Has Created a Holding Company

question 8

Multiple Choice

An individual residing in Saskatoon has created a holding company to own the shares of their CCPC (which earns only active business income) .The use of the holding company will permit which of the following?

• A)The corporation's income will not be taxed.
• B)The individual will receive dividends from the holding company, free of tax.
• C)The holding company will receive dividends from the corporation, free of tax.
• D)The individual will receive dividends from the corporation, free of tax.