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Business, 15.04.2021 23:40 kimvigil4580

TB 20-11 Andy Griffin would like to invest $150,000 i... Andy Griffin would like to invest $150,000 in Foreign Co., which was founded and operates in a foreign country. This investment would give
Andy 25% ownership of the company. An annual dividend of $15,000 (Canadian funds) is anticipated.
Andy's personal marginal tax rate is 45% on regular income, 28% on eligible dividends, and 37% on non-eligible dividends. The foreign
company is subject to a tax rate of 38% on all business income. Any dividends received by Andy, personally, will be subject to a 15%
withholding tax
Required:
A. Determine the total tax liability (foreign and Canadian) that Andy will be subject to upon receiving dividends from Foreign Co.
B. How would your answer in A change if Andy established a Canadian holding company to purchase the shares, (subject to a 5%
withholding tax on dividends received)?
C. Determine Andy's after-tax proceeds be if he received eligible dividend income from the holding company,​

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TB 20-11 Andy Griffin would like to invest $150,000 i... Andy Griffin would like to invest $150,000...
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