Question: How does the tax treatment of intercorporate dividends affect the relationship between dividends and capital gains when one corporation invests in shares of another corporation?

How does the tax treatment of intercorporate dividends affect the relationship between dividends and capital gains when one corporation invests in shares of another corporation? (Assume that both entities are taxable Canadian corporations.)

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The owner of shares of a corporation can realize a return on that investment from dividends andor ca... View full answer

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