Jane Snow received $20,000 in dividend income in 2016 from a 5% investment she owns in her boyfriend’s company in Tanzania. Withholding tax of 25% applied to the dividend. Jane also earned Canadian employment income of $60,000 in 2016.

REQUIRED

(1) Compute the tax liability Jane paid on her 2016 income.
(2) What option exists regarding the tax treatment of the withholding tax?
(3) What would change if the share investment had been held by Jane’s Canadian corporation?