Ann: Update - Dividend/Distribution - TLS, page-68

The article you link to is misleading at best

It is wrong when it claims that the $3000 tax paid on her behalf by the company is effectively a withholding tax. It is not
The $3000 is a tax payable by the company, which she owns, on the profit made by that company. Companies are taxed on their profit weather or not their owners income is taxable on a personnel level.

The owners are entitled to a credit on such taxes against any tax that they pay on a personnel basis so as not to be taxed twice on the income from their company. If they pay no tax they're not entitled to a credit.

People seem to ignore the point that any credit paid to a person who has paid no tax means the tax paid by their company is refunded in full depriving the country of such tax which is payable on that company's profit.

Someone has to pay the tax.