The use of a corporation is most likely to result in a reduction in total taxes if:

Question

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A CCPC (Canadian Controlled Private Corporation) earning active business income is eligible for the small business deduction, which allows for a lower federal tax rate than the general corporate tax rate. This would result in a reduction in total taxes. A public company earning manufacturing income would not be eligible for the small business deduction, and a CCPC earning dividends or investment income does not qualify for the deduction either.

The Use of a Corporation Is Most Likely to Result