Why is the dividend tax credit the full gross up amount?Problem $1$

Victor is confused, so he has come to you for advice. He has heard that not all dividends are treated

the same, so he would like you to explain how the following are taxed to decide where he should invest

his money. Victor has income that will result in the income below being taxed in the highest tax bracket,

which has a combined federal and provincial marginal tax rate of $53\%$ for the province he lives in$.$

Assume the following:

$(1)$ $$1,000$ of dividends from Canadian public companies.

$(2)$ $$1,000$ of dividends from Canadian private companies earning active business income taxed at

a low rate.

$(3)$ $$900$ of dividends from foreign public companies. $$100$ was deducted at source and remitted to

the foreign government.

$(4)$ The provincial dividend tax credit is $\frac{4}{13}$ for Canadian private company dividends earning active

business income taxed at the low rate and $\frac{5}{11}$ for public company dividends.