Part II: The underlying problem is the differential that exists today between personal tax rates on taxable dividends as opposed to capital gains. Read this articleSurplus stripping: We need to fix Canada’s tax rules
The rise of small-business incorporation is suppressing taxable incomes of rich Canadians. The growing gulf between top personal tax rates and the low rates paid by small CCPCs is driving the rise of incorporation. Read this articleAre the rich really getting poorer in Canada?