Dividend Income Received by Investors - Other Topics

KNOWLEDGE EXPECTED OF: Both CFP^® Professionals and FPSC Level 1^® Certificants

Explain the tax impact of dividend income received by a Canadian Controlled Private Corporation from a Canadian corporation, specifically knowledge such as:
- Generally, not subject to Part I tax
- Subject to part IV tax
- Impact on Refundable Dividend Tax On Hand (RDTOH) Account

Explain the tax impact of dividend income received by a trust from a Canadian corporation.
- When maintained in the trust
- When distributed to beneficiary(ies) of the trust

Glossary of Verbs (mouse over to see definition)

Define

To state exactly the meaning of

Identify

To be aware of / to recognize and correctly name / to locate an appropriate resource

Explain

To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it

Compare

To note the similarities and differences between two or more things

Estimate

To determine an approximate value for

Calculate

To find the value using mathematics

Convert

To change from one form or purpose to another

Evaluate

To reach a conclusion or make a judgement through careful study

Interpret

To give the meaning of / to construe or understand / to translate orally

Read more about the Taxonomy used in the FP-BoK