[Verse 1]
Sarah gets her dividend check, from her shares of company stock
Two types flow into her hands, eligible and non-eligible blocks
Eligible comes from Canadian corps, paying full corporate tax
Non-eligible from smaller firms, with different treatment facts
[Chorus]
Gross it up, then credit down, that's the dividend dance
Eligible gets thirty-eight percent enhancement
Non-eligible gets fifteen, a smaller advance
Tax credit follows the gross-up, giving taxpayers a chance
[Verse 2]
Take that dividend amount, multiply by gross-up rate
Eligible dividends grow, by thirty-eight percent straight
Non-eligible multiplied, by fifteen percent more
This grossed-up income hits your return, increasing what's in store
[Chorus]
Gross it up, then credit down, that's the dividend dance
Eligible gets thirty-eight percent enhancement
Non-eligible gets fifteen, a smaller advance
Tax credit follows the gross-up, giving taxpayers a chance
[Bridge]
Federal credit comes next, to offset what you owe
Eligible gets twenty-five percent of gross-up flow
Non-eligible earns nine point zero three, of the enhanced amount
Provincial credits vary too, every jurisdiction counts
[Verse 3]
Integration is the goal, avoiding double tax
Corporate income taxed once, then personal attacks
The credit system balances, what companies have paid
So dividend income flows, with fairness overlaid
[Chorus]
Gross it up, then credit down, that's the dividend dance
Eligible gets thirty-eight percent enhancement
Non-eligible gets fifteen, a smaller advance
Tax credit follows the gross-up, giving taxpayers a chance
[Outro]
Remember the key numbers, thirty-eight and fifteen
Twenty-five and nine-oh-three, credits in between
Dividend taxation, keeps the system fair and clean