How To Treat Dividends And Licensing Fees On Corporate Tax Return

Question

2157 viewsSeptember 5, 2018

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William (anonymous) Posted September 5, 2018

I have a question about HST charged on licensing fee (for 5 yrs) of a business. How would I file this in T2? Is this considered as an operating expense under “amortized intangible assets”?

Second question is regarding cash dividend payout to shareholders. Is it necessary to report this in Balance Sheet, or is reporting under Schedule 3 adequate?

1 Answer

score 0 · Answer 1 · 2018-09-05T18:57:16+00:00

Hi,

Cash dividends paid need to be reported on the balance sheet (GIFI Schedule 100) and on Schedule 3. Report licensing fees as other operating expense on GIFI Schedule 125.

How To Treat Dividends And Licensing Fees On Corporate Tax Return

1 Answer

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