Dividends are paid out after corporate taxes are calculated... from t here it transfers to you personally and you have to pay tax again.

Thus it's double taxation.


You can be crafty to an extent and say.. give you, your wife and two kids all $32,000 each in dividends keeping it below the 16,000 personal tax floor.

Then you only pay 26% tax on $128,000 (likely higher in other provinces, since AB is usually cheaper). still. if that all went to one person.

you're looking at jumping into a 38% tax bracket or so on personal income. plus the corporate tax already paid = sucky day :P