Brody has a lawn care business, which he incorporated in the current year. On incorporation, Brody and

Question:

Brody has a lawn care business, which he incorporated in the current year. On incorporation, Brody and his 15-year-old son, who often works with him, each subscribed for 1 common share at $100 per share. Brody paid the $200 for both the shares. The will pay dividends to Brody and his son, annually.
Describe the tax treatment of the income received by Brody’s son. Income tax reference: ITA 120.4.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...