All other things being equal, a low provincial dividend tax credit favours the use of divi- dends to compensate the owner/manager of a CCPC.

Name: All other things being equal, a low provincial dividend tax credit favours the use of divi- dends to compensate the owner/manager of a CCPC.
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Question

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A low provincial dividend tax credit would make dividends less attractive as a form of compensation because it would result in higher taxes on dividend income for the owner/manager of a CCPC.

All Other Things Being Equal, a Low Provincial Dividend Tax