Asked by

Taylor Everett
on Nov 08, 2024

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Dividend tax credit is best described as:

A) An incentive for investors to invest in Canadian corporations by reducing federal and provincial tax on dividends income.
B) An incentive for investors to invest in US corporations by reducing federal and provincial tax on dividends income.
C) An incentive for investors to invest in European corporations by reducing federal and provincial tax on dividends income.
D) A method to pre-pay taxes to Canada Revenue Agency based on dividend income earned.
E) A tax incentive received by corporations if they provide dividends to investors.

Dividend Tax Credit

Tax formula that reduces the effective tax rate on dividends.

Canadian Corporations

Companies incorporated under the laws of Canada, subject to Canadian corporate regulations and taxation.

  • Examine the impact of transactions on the equity of shareholders.
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CG
Claudia GonzalezNov 13, 2024
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