If all of the income earned by a business is active business income, flowing the income through a Canadian controlled private corporation, as opposed to earning the income in an unincorporated business, will always provide a tax savings.

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Quizplus · Accepted Answer

This statement is false. While incorporating a business can provide tax savings in certain circumstances, it is not always the case. The tax implications of incorporating a business depend on several factors, such as the size of the business, the nature of its income, and the owner's individual tax situation. It is recommended to seek professional advice before making a decision to incorporate a business.

If All of the Income Earned by a Business Is