knowledge topics
Dividend Income Received by Investors
KNOWLEDGE EXPECTED OF: Both CFP® Professionals and QAFPTM Professionals
- Define types of dividends, such as:
- Eligible1
- Other than Eligible2
- Capital
- Foreign
Dividends Received by an Individual from a Canadian Corporation
- Explain the purpose of the federal dividend tax credit.
- Identify the gross up rates for dividend income received from a Canadian corporation.3
- Calculate the dividend gross up for dividend income received from a Canadian corporation.
- Explain the dividend tax credit for dividend income received from a Canadian corporation.
- For eligible dividends
- For other than eligible dividends
- Explain the income tax impact of dividend income received from a Canadian corporation.
- Estimate the income tax impact of dividend income received from a Canadian corporation.
- Explain the criteria for dividend income to be transferred between spouses.
Dividends Received by an Individual from a Non-Resident (Foreign) Corporation
- Explain the tax impact of dividend income received from a non-resident (foreign) corporation.4
- Estimate the income tax impact of dividend income received from a non-resident (foreign) corporation.
- Identify that a foreign dividend tax credit may exist and be applied to dividend income received from a non-resident (foreign) corporation.
Dividends Received by an Individual from a Trust
- Explain the tax impact of receiving dividends from a trust.
- Estimate the income tax impact of dividend income received from a trust.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally

REFERENCES
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/120/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/120/menu-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/425-eng.html
- http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/rprtng-ncm/lns101-170/121/frgn-eng.html