Gross Dividends The gross dividend is a multiple used to calculate what shareholders owe in taxes from dividends received from Canadian Controlled Private Corporations (CCPCs). Income within a corporation is taxed first at the organization level, and then the after-tax portion is taxed further in the hands of shareholders at the individual level. The gross amount in 2013 for eligible dividends was 138% and for non-eligible dividends it was 125%. Each province varies in terms of corporate and personal tax rates, so there is no absolute savings across Canada. Many taxpayers may find this rule undesirable because cashing in is essentially artificially increasing their income before paying taxes on it, which in turn increases their taxable income. Controversy arises when dividends are grossed up before the tax due is calculated, and taxpayers argue that it could be equally effective to extrapolate after the tax due has been calculated. Grossing dividends can also cause additional problems if included in the calculation of tax filing penalties and...