• 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.