BC taxes on T3 that allocate all its income

Tax Topics
1

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)?

2

Whoops this reply was to something a year ago.

Yeah sounds like either in previous years you had eligible divs that offset the gross-up with the dividend tax credit AND/OR the prior years were before the changes to the minimum tax rules, in particular the rate increase from 15 to 20.5%.