Joan Barts owns all of the outstanding shares of Barts Ltd., a CCPC that is carrying on an

active business. She would prefer to pay herself salary instead of dividends if:

A.

The corporation has a large RDTOH balance.

B.

The corporation is located in a province with a low corporate tax rate.

C.

The corporation has Taxable Income in excess of $500,000.

D.

The corporation is located in a province with a high dividend tax credit.

600

Canadian Tax Principles 2016/17 Edition - Test Item File Problems