A Canadian-controlled private corporation (CCPC) earns $400,000 of active business income in Nova Scotia. What is the approximate general corporate income tax rate that applies to this income, assuming it exceeds the small business limit?

Question: A Canadian-controlled private corporation (CCPC) earns $400,000 of active business income in Nova Scotia. What is the approximate general corporate income tax rate that applies to this income, assuming it exceeds the small business limit?

Answer options:

• 15% ✅ 27%
• 38%
• Up to 50%

Correct answer: 27%

Explanation: For income exceeding the small business limit, CCPCs pay the general corporate income tax rate. This is approximately the federal general rate (15%) plus a provincial rate (e.g., Nova Scotia's general rate is 14%), totalling around 29%, but options may round or simplify to near 27%. The general federal rate is 15%, plus provincial rates (e.g., NS is 14%), making the total rate of approximately 29%. Option B is the closest reasonable approximation of a combined federal and provincial general rate.