Under Canadian tax legislation, Canadian resident individuals who receive eligible dividends are entitled to an enhanced gross-up and dividend tax credit
on such dividends.
An eligible dividend paid to a Canadian resident is entitled to the enhanced dividend tax credit
It taxes shareholder income as it is earned and provides relief through the dividend tax credit
and the partial tax-exemption of capital gains when income is taken out of the corporation.
The dividend tax credit
will be abolished and up to PS5,000 of dividends each year will be tax free.
A dividend tax credit
mitigates the tax, however, the net income is still $138.
Chancellor George Osborne said the Government will abolish the dividend tax credit
from April 6 next year and introduce a new Dividend Tax Allowance of PS5,000 a year.
The Government is axing the dividend tax credit
and replacing it with a tax-free dividend annual allowance of PS5,000.
UKIP would also reduce the annual limit for tax relievable pension contributions to PS10,000 gross and reinstate the dividend tax credit
With the prospect of seeing Stamp Duty on AIM shares abolished at the start of the next tax year, the tax advantages of investing on AIM could be four-fold: no Stamp Duty, no Capital Gains Tax (CGT), no additional tax on dividend income (any investment dividends are received with a 10 per cent dividend tax credit
which cannot be reclaimed) and subject to certain criteria, no IHT.
Bill 17: An Act to Amend the Income Tax Act, which facilitates a child tax benefit that is also applicable for shared custody arrangements, and adjusts the dividend tax credit
and deductions for corporations with foreign investment income;
The audit note criticizes the fact that dividends from Canadian corporations qualify for the dividend tax credit
even when they are paid out of foreign source income that has not been subject to either Canadian or, in many cases, foreign income tax.
After two years of refusing to comply with The Freedom Of Information Act, Gordon Brown has finally been forced to release the information that he was warned by experts in 1997 that removing the dividend tax credit
on occupational pensions would lead to thousands of workers, like former ASW staff, losing most or all their promised pensions.