The use of a corporation to provide tax deferral is most successful when:

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The use of a corporation to provide tax deferral is most successful when the combined federal/provincial tax rate on corporations is less than the combined federal/provincial tax rate on individuals. This is because income earned through a corporation is taxed at the lower corporate tax rate and can be kept in the corporation for future use or paid out as dividends when the individual is in a lower tax bracket.

The Use of a Corporation to Provide Tax Deferral Is