Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 10/16/2012

Canada - Notification of partial “eligible dividends” designation 

October 16: The Canada Revenue Agency (CRA)—in a recent technical interpretation—clarified that when only a portion of a dividend is designated as an “eligible dividend” (as introduced in the 2012 federal budget), an online notice, press release, or a notice in an annual or quarterly report that an eligible dividend has been paid is still an acceptable method of notification that a public corporation paid an eligible dividend.

The CRA said its position on acceptable methods of making a notification (originally published in a 2006 press release) would still apply when only a portion of a dividend is designated as an eligible dividend.


The 2012 federal budget announced that corporations would be allowed to designate any portion of a dividend to be an eligible dividend. This measure is now contained in subsection 89(14).


Read an October 2012 report prepared by the KPMG member firm in Canada: Notification of Pubco's New Partial Eligible Dividend Designation




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