For integration to work properly, the combined federal/provincial dividend tax credit must be equal to the gross up.For eligible dividends, this will occur in 2011 when the pro- vincial dividend tax credit rate is equal to 10/23 of the gross up.

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This statement is true. For integration to be effective, the combined federal and provincial dividend tax credit must offset the gross up. In the case of eligible dividends, this will happen when the provincial dividend tax credit rate is equal to 10/23 of the gross up, which is expected to occur in 2011.

For Integration to Work Properly, the Combined Federal/provincial Dividend Tax