Which of the following statements about dividends is true?
A)Dividends are paid before interest is paid.
B)Dividends received by Canadian households are taxed at the marginal personal tax rate.
C)Dividends are tax deductible.
D)Dividends received by one Canadian corporation from another Canadian corporation are not taxed.

Question

Quizplus · Accepted Answer

Dividends received by one Canadian corporation from another are generally not taxed due to the dividend received deduction, which prevents double taxation on the same income.

Which of the Following Statements About Dividends Is True