The use of a corporation as a tax shelter is most effective when the corporate tax rate is significantly higher than the individual tax rate.

Name: The use of a corporation as a tax shelter is most effective when the corporate tax rate is significantly higher than the individual tax rate.
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A corporation acts as a tax shelter when the corporate tax rate is lower than the individual tax rate, allowing individuals to minimize their tax liabilities by keeping income within the corporation.

The Use of a Corporation as a Tax Shelter Is