So this company is investment company ! It has invested in 2 companies ! In first one it has 12% shares and in second one it has 50% shares ( class B common shares ) . It has received actual amount of dividends other than eligible dividends from both the companies ! What are the tax implications and what expenses can be claimed ?
I am assuming that all of the companies involved are Canadian corporations. In this case, your investment company can claim a tax deduction under section 112 of the Canadian income tax act for the dividends received. To do so, complete Schedule 3 of the T2 corporate tax return. In addition, if your investment company owns more than 10% of the voting shares and 10% of the value of all shares in the capital stock of the corporation, then Part 4 tax (38.33%) will not apply. In other words, your investment company will not have to pay tax on the dividends received.
in Accounting & Taxation Services
Ready to leave your accounting and taxation worries behind?
Unit 20, 145 Traders Blvd E Mississauga ON, L4Z 3L3 Canada
Call: (905) 268-0150 Email: info@madanca.com
SOCIAL CONNECT