I think it would partly depend on the case.
In very small businesses, the spouse plays an integral role. There should be room in the legislation to allow for income splitting with the spouse, and for that matter, for other small-business related members or third parties to share in the income—in other words, participate in dividends. What it really turns on is the contribution of those entities into the business.
I think the legislation should have a flexibility to accommodate more than just the principal owner, and it should settle on a mechanism that is clear and simple for people to follow.