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Eligible Dividend – New Rules

posted Jan 9, 2013, 5:54 PM by Margaret Lin CPA, CGA, CFP

The corporation is now allowed to designate, at the time it pays a taxable dividend, that a portion of the dividend is an eligible dividend.  Also a late designation of an eligible dividend is accepted if it is made within the three year period following the day on which the designation was first required to be made. Amended slips should be prepared accordingly.  The new rules only apply to the dividends paid after March 28, 2012.