The Canadian Tax System Practices Integration Between Corporations and Individuals

question 12

Essay

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.

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Definitions:

Reality

The state of things as they actually exist, independent of perception or beliefs.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness and interdependence of the world's markets and businesses.

Workforce Diversity

The inclusion of individuals with a variety of characteristics, such as age, gender, ethnicity, and sexual orientation, in a workplace.

Technological Innovation

The development and application of new technologies or improvements to existing technologies to create novel solutions or enhance efficiency.