David Slater has investments that he anticipates will earn interest income of $126,000 for the year ending December 31, 2020. He has employment income in excess of $300,000, with additional amounts subject to a provincial tax rate of 18 percent. The provincial dividend tax credit is equal to 27 percent of the dividend gross up for noneligible dividends. Also in his province of residence, the corporate tax rate is 3 percent on income eligible for the small business deduction and 12 percent on other income. Mr. Slater has asked your advice as to whether he should transfer these investments to a corporation in which he would own all of the shares. Advise him with respect to any tax deferral that could be available on income left in the corporation and on any tax savings that could be available if all of the income is paid out as dividends.