Mr. Wallace, I got a little lost in the translation earlier, and I would like to go back to the example we were discussing. For a gross salary of $30,000, the federal tax bill would be approximately $4,000. The tax credit is equal to 40% of total earnings—$12,000 in this example—which is too high. So, we fall back on the $3,000 amount and that is the amount deducted from federal tax payable.
On November 25th, 2009. See this statement in context.