Dividends other than eligible dividends come from taxable Canada corporations that can claim the small business deduction. The dividends are paid out after the corporation had paid its tax on income. How are these dividend is taxed in the hands of the recipient?

A) The are subject to a 15% gross-up and 9.0301% dividend tax credit.

B) They are non-taxable, because the corporation has already paid tax on their income

C) They are taxed at the same rate as if it were interest or any other type of income.

D) They are subject to a 38% gross up and 15.0198% dividend tax credit