Effect of TOSI on dividends – Chaplin & Co. LLP, Chartered Professional Accountants

Effect of TOSI on dividends

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Effect of TOSI on dividends

Home » Tax Facts » Effect of TOSI on dividends

Actual amount of ineligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- 180 300 1,494 3,572 5,600 7,796 10,075 16,896 35,980 57,641	4,774 9,548 14,322 19,096 23,870 28,644 33,418 38,192 47,740 71,610 95,480	4,774 9,368 14,022 17,602 20,298 23,044 25,622 28,117 30,844 35,630 37,839

Actual amount of eligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- 300 450 600 600 2,054 4,178 5,712 9,125 22,047 40,848	3,934 7,868 11,802 15,736 19,670 23,604 27,538 31,472 39,340 59,010 78,680	3,934 7,568 11,352 15,136 19,070 21,550 23,360 25,760 30,215 36,963 37,832

Actual amount of ineligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- 180 375 1,626 3,706 5,734 7,943 10,242 17,151 36,262 57,958	4,774 9,548 14,322 19,096 23,870 28,644 33,418 38,192 47,740 71,610 95,480	4,774 9,368 13,947 17,470 20,164 22,910 25,475 27,950 30,589 35,348 37,522

Actual amount of eligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- 300 450 600 600 2,176 4,251 5,756 9,257 22,101 41,164	3,934 7,868 11,802 15,736 19,670 23,604 27,538 31,472 39,340 59,010 78,680	3,934 7,568 11,352 15,136 19,070 21,428 23,287 25,716 30,083 36,909 37,516

Actual amount of ineligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- 180 550 1,623 3,802 5,795 7,998 10,339 17,310 36,285 57,877	4,740 9,480 14,220 18,960 23,700 28,440 33,180 37,920 47,400 71,100 94,800	4,740 9,300 13,670 17,337 19,898 22,645 25,182 27,581 30,090 34,815 36,923

Actual amount of eligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- - - - 600 2,377 4,360 5,852 9,534 22,400 41,774	3,934 7,868 11,802 15,736 19,670 23,604 27,538 31,472 39,340 59,010 78,680	3,934 7,868 11,802 15,736 19,070 21,227 23,178 25,620 29,806 36,610 36,906

Actual amount of ineligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- - - 1,048 2,951 4,864 6,880 9,319 16,317 35,126 56,555	4,684 9,368 14,052 18,736 23,420 28,104 32,788 36,472 46,840 70,260 93,680	4,684 9,368 14,052 17,688 20,469 23,240 25,908 27,153 30,523 35,134 37,125

Actual amount of eligible dividend	Regular Tax	Split Income Tax	Difference
10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 100,000 150,000 200,000	- - - - - 203 1,146 2,661 6,595 22,094 41,563	3,934 7,868 11,802 15,736 19,670 23,604 27,538 31,472 39,340 59,010 78,680	3,934 7,868 11,802 15,736 19,670 23,401 26,392 28,811 32,745 36,916 37,117

The difference is less for eligible dividends because the maximum tax rate for an eligible dividend is approximately 7% lower than that for an ineligible dividend.