Briefly explain why an individual who receives dividends from a Canadian corporation must include 115% (in 2019,

Question:

Briefly explain why an individual who receives dividends from a Canadian corporation must include 115% (in 2019, 116% in 2018) or 138% of the dividend received in income for tax purposes, while a corporation receiving the same dividend includes only the actual amount of the dividend.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...

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