Decreases in the dividend tax credit for ineligible dividends has increased over-integration on investment income earned via a corporation for individuals who are in the top bracket. The extra burden arising from earning and receiving investment income via a corporation is 3.54% in Alberta, 5.61% in BC and 5.33% in Ontario. On the other hand, a taxpayer at the top marginal rate obtains a deferral of 3.36% in Ontario in respect of investment income that remains in the corporation.
Frédéric Deschênes “Increased Overintegration of Investment Income: A Growing Disadvantage for CCPCs” Canadian Tax Focus 16:3 (August 2026)
