RE:RE:The $10/Gj numberI think the whole idea behind the dvidend tax credit is that the dividends were taxed before we received them.
"The reason is that tax authorities have their eye on the big picture. “It’s all about tax integration,” says McShane, the financial planner. Think of it this way: the money you receive as dividends starts off as a company’s earnings, and the company pays corporate taxes on those earnings. After paying those taxes, the company takes a portion of the money that is left and passes it directly to you as a dividend, and you pay tax on it again.
The government recognizes that it’s unfair to tax the same income twice. So they give you a break on dividend taxes to offset the taxes the corporation already paid. As a result, you should pay roughly the same tax as if the income had come straight to you in the first place, without passing through corporate hands."
https://www.moneysense.ca/save/retirement/delectable-dividends/
A question for Houbapop: Are you sure the $3.25 collected from Cascades are a deduction from the $10/GJ and not a passthrough that has not been tacked on top not unlike HST? You are the guru but it does seem rather misleading by management but that of course is completely plausible.
GLTA
PabloLafortune wrote: Does that mean our dividends are getting taxed BEFORE as well as after we receive them?