Which of the following statements is true about personal taxes in Canada?
A) Individual and corporate marginal tax rates are the same.
B) Capital gains and interest income are taxed at the same rate for individuals.
C) Dividends received from Canadian corporations are taxed differently than dividends received from US corporations.
D) Capital losses occur when a depreciable asset is sold below its original purchase price.

Question

Quizplus · Accepted Answer

Dividends received from Canadian corporations are taxed differently than dividends received from US corporations. This is because of the dividend tax credit system in Canada, which provides a lower tax rate for dividends received from Canadian corporations to encourage investment in the Canadian economy. Capital gains and interest income are also taxed differently, with capital gains receiving a more favorable tax treatment. Individual and corporate marginal tax rates are not the same, with corporate rates being generally lower than individual rates. Capital losses can occur when a depreciable asset is sold below its original purchase price, but this is not directly related to personal taxes.

Which of the Following Statements Is True About Personal Taxes