Question

an individual receives interest income of $16,887 in 2019. the individual is in the top bracket and pays 33% federal tax on any additional income. the individual lives in a province where the provincial tax rate is a flat rate of 10% on all taxable income. the dividend tax credit in this individual's province of residence is 5/11 for eligible dividends and 5/13 for non-eligible dividends. what is the net tax payable associated with the receipt of this income?

Answer 1

Net Tax payable in association with Receipt of income

income Received =$16887

federal tax 33%=$5573

less:provicional Tax =$1689($16687*10%)

Income Tax payable=$3884

Note

• interset income is 100% taxable assuming income received treated as addtional income,That to such income not coverd any exemption
• if income received covered below basic exemption not chargeble to any tax
• in this question dividend tax credit information is irrelavant because interest received not a dividend income