Individuals with no other source of income can receive a substantial amount of dividends on a tax free basis. This is because dividend income uses up an individual's tax credits at a lower rate than is the case with other sources of income.

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This is true as in many countries, including the UK and Canada, there is a dividend tax credit that reduces the amount of tax owed on dividend income. As a result, individuals with no other source of income can receive a substantial amount of dividend income on a tax-free basis.

Individuals with No Other Source of Income Can Receive a Substantial