During 2020, Mr. John Johns receives $17,000 in non-eligible dividends from a taxable Canadian corporation. His income is such that all additional amounts will be taxed at a 29 percent federal rate and a 12 percent provincial rate. His provincial dividend tax credit for non-eligible dividends is equal to 30 percent of the gross-up. Determine the total federal and provincial tax that will be payable on these dividends and his after-tax cash retention.

Answer rating: 100% (QA)

John Johns will owe 4890 in taxes on the 17000 in dividends he receives in 2020 This w... View the full answer