Pinecrest Investments Ltd., a Canadian-controlled private co…

Pinecrest Investments Ltd., а Cаnаdian-cоntrоlled private cоrporation, earns passive investment income and initially pays a relatively high corporate tax rate on that income. A portion of the tax may later be refunded when the corporation pays taxable dividends to its shareholder.What is the primary purpose of this refundable-tax system?