Question: During 2023, Ms. Mary receives $5,600 in non-eligible dividends from taxable Canadian corporations. Her income is such that this additional amount will be subject a
During 2023, Ms. Mary receives $5,600 in non-eligible dividends from taxable Canadian corporations. Her income is such that this additional amount will be subject a Federal income tax rate of 26% and a provincial income tax rate of 10%. The province provides a dividend tax credit equal to 38% of the gross up.
Required:
Determine the total federal and provincial income tax that will be payable on these dividends and the after-tax retention.
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