What is the test for grossed-up dividend income in an income tax return?

By operation of the Income Tax Act, the declared dividend contained in an income tax return does not reflect the actual sum received by the taxpayer. In fact, when declaring dividend income, the taxpayer must gross up the sum received. The amount a dividend is grossed up depends on the year in which it was declared. On the other hand, a taxpayer who declares dividend income receives a dividend tax credit which lowers the tax payable on dividend income. As a result, for the purposes of the child support guidelines, the grossed up dividend income is used to determine the relevant income figure. (See: Rawluk-Harness v. Harness [2014] O. J. 2999 para. 24-31).