hich of the following BEST describes refundable Part IV tax?

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Part 1

A.

Refundable Part IV tax is calculated as 38 1/3% of portfolio dividends received in the current taxation year plus 10 2/3% of dividends received from connected corporations in the current taxation year.

B.

The purpose of refundable Part IV tax is to improve integration of the Canadian tax system by eliminating the deferral of taxes on investment income earned by a corporation and distributed as a dividend to a related corporation.

C.

Refundable Part IV tax is calculated as 38 1/3% of dividend income earned in the taxation year.

D.

The purpose refundable Part IV tax is to increase the overall tax rate on investment income earned by a corporation to avoid the use of a corporation to temporarily shelter passive income from high individual tax rates