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.
