Am I missing something?
I have a BC Family Trust with only non-eligible dividend income. There is about $800 for professional fees and the same amount of income retained to cover the expense. All the other non-eligible dividends income is allocated to beneficiaries, but I’m left with a small amount of taxes owing (over $2).
Looking into it, it’s BC taxes on the difference between the 20.5% tax rate on the dividend gross up, and the 15% dividend tax credit on the gross up.
I feel like I’ve done T3 for many years and never had any taxes owing due to gross-up. Did I just luck out in previous years that there was always interest or eligible dividends? What am I missing (if anything)?