This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: separate from the affairs of its owner(s) - the shareholder(s) * For tax purposes, corporate pro±ts earned or losses incurred belong to the corp.; however, at some point individual shareholders will realize pro±ts of the crop. by receiving dividends and /or by disposing of their shares, if and when they rise in value * While the individual and the corp. are separate taxable entities, there is only one recipient of pro±t and cash ²ow- the individual * Therefore, the separate taxation of the two primary entities is only temporary and that ultimately the two will be integrated * The Canadian income tax system taxes two primary entities - the individual and the corp....
View Full Document
- Spring '11
- Taxes, Corporation, Taxation in the United States, separate taxable entities