Income Tax Regulations (C.R.C., c. 945)

Regulations are current to 2014-06-12 and last amended on 2014-05-16. Previous Versions

Capital Gains Dividends Payable by Non-Resident-Owned Investment Corporations

[SOR/94-686, s. 79(F)]

 Any election under subsection 133(7.1) of the Act in respect of a dividend payable by a non-resident-owned investment corporation shall be made by filing with the Minister the following documents:

  • (a) the form prescribed by the Minister;

  • (b) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of their resolution authorizing the election to be made;

  • (c) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of the authorization of the making of the election by the person or persons legally entitled to administer the affairs of the corporation;

  • (d) where paragraph (e) is not applicable, a schedule showing the computation of the amount, immediately before the election, of the corporation’s capital gains dividend account; and

  • (e) where subsection 133(7.3) of the Act is applicable, a schedule showing the computation of the amount, immediately before the earlier of

    • (i) the date the dividend became payable, and

    • (ii) the first day on which any part of the dividend was paid,

    of the corporation’s capital gains dividend account.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/81-704, ss. 2, 3;
  • SOR/83-268, s. 6;
  • SOR/94-686, s. 79(F).

Alternative to Additional Tax on Excessive Elections

 Any election under subsection 184(3) of the Act in respect of a dividend that was paid or payable by a corporation shall be made by

  • (a) filing with the Minister the following documents:

    • (i) a letter stating that the corporation elects under subsection 184(3) of the Act in respect of the said dividend,

    • (ii) where the directors of the corporation are legally entitled to administer the affairs of the corporation, a certified copy of

      • (A) their resolution authorizing the election to be made, and

      • (B) their declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation,

    • (iii) where the directors of the corporation are not legally entitled to administer the affairs of the corporation, a certified copy of

      • (A) the authorization of the making of the election, and

      • (B) the declaration that the election is made with the concurrence of all shareholders who received or were entitled to receive all or any portion of the said dividend and whose addresses were known to the corporation

      by the person or persons legally entitled to administer the affairs of the corporation,

    • (iv) a schedule showing the following information:

      • (A) the date of the notice of assessment of the tax that would, but for the election, have been payable under Part III of the Act,

      • (B) the full amount of the said dividend,

      • (C) the date the said dividend became payable, or the first day on which any part of the said dividend was paid if that day is earlier,

      • (D) the portion, if any, of the said dividend described in paragraph 184(3)(a) of the Act,

      • (E) the portion, if any, of the said dividend that the corporation is claiming for the purposes of an election in respect thereof under subsection 83(1) or (2), 130.1(4) or 131(1) of the Act pursuant to paragraph 184(3)(b) of the Act, and

      • (F) the portion, if any, of the said dividend that is deemed by paragraph 184(3)(c) of the Act to be a separate dividend that is a taxable dividend; and

  • (b) making an election in prescribed manner and prescribed form in respect of any amount claimed under paragraph 184(3)(b) of the Act.

  • NOTE: Application provisions are not included in the consolidated text;
  • see relevant amending regulations. SOR/78-347, s. 1;
  • SOR/83-268, s. 7;
  • SOR/88-165, s. 31(F);
  • SOR/94-686, s. 79(F).