In which of the following situations would there be a tax advantage to the taxpayer to incorporate?

Question 5 options:

In a province where there is under-integration due to high corporate tax rates at the provincial level and the taxpayer requires all of the income from the business each year

In a situation where the taxpayer has been unable to make full use of their basic personal amount

When there has been significant growth in value of the business and the ownermanager is planning to retire and sell the business in a few years

When the taxpayer is contemplating splitting income with family members by paying a dividend to their two-year-old daughter