Which of the following statements with respect to the general rate reduction for corpora- tions is not correct?

Question

Quizplus · Accepted Answer

The statement that the general rate reduction is not available to Canadian Controlled Private Corporations (CCPCs) is not correct. CCPCs are eligible for a lower tax rate on their active business income, called the small business deduction, which is not affected by the general rate reduction. The other statements are correct. The general rate reduction is calculated by applying a specified percentage (currently 13%) to full rate taxable income, and full rate taxable income for a public company is reduced by the income eligible for the manufacturing and processing deduction. The general rate reduction serves to reduce the effective tax rate for corporations that have full rate taxable income, while the basic tax rate for corporations remains at 38 percent.

Which of the Following Statements with Respect to the General