An individual's only income is from taxable dividends from shares of public companies. The individual is considering incorporating the public company shares. If the individual was to do so, which of the following statements is correct?

All of the federal corporate income tax paid on the taxable dividends would be refunded when all of the dividends received by the corporation are paid out to the individual shareholder.

The individual taxes on the taxable dividends would be lower after they have passed through the corporation.

There would be a reduction in the individual's total income tax.

There would always be deferral of income tax as long as the taxable dividend income was retained in the corporation.