Currently, 50% of capital gains earned by a CCPC is included in their capital dividend account. Suppose the Canadian tax system changed the rules on capital gains such that 75% of capital gains become taxable. To preserve integration, how should this affect the rules with respect to the capital dividend account? Explain, and make sure to refer to the concept of integration?

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Integration refers to the principle in taxation where corporate and personal taxes are coordinated t... View the full answer