Which of the following does not provide an accurate description of refundable? taxes? A. The basic concept...

50.1K

Verified Solution

Question

Accounting

Which of the following does not provide an accurate descriptionof refundable? taxes?
A. The basic concept of refundable taxes is that a portion ofthe corporate tax paid on investment income is refunded to thecorporation when the income is distributed to shareholders in theform of dividends.
B. One purpose of refundable taxes is to keep corporate taxrates high to discourage accumulation of investment income in acorporation.
C. The only purpose for refundable taxes is to create perfectintegration in the Canadian tax system.
D. There are three different components of tax that can berefunded on the payment of? dividends: Refundable portion of PartI? tax, Additional Refundable Tax on Investment? Income, and PartIV tax.

Answer & Explanation Solved by verified expert

3.8 Ratings (413 Votes)

C The basic concept of refundable tax is not to create a perfect integration in the Canadian tax system Hence it does not provide an accurate description of refundable taxes Canada tax system is built on the concept of integration between the corporations and their shareholders In other words See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member