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Hi Allan, I might be selling my company (CCPC) (asset sale, buyer not interested in share sale). I will have a capital gain of $100K.
From my understanding I can elect to pay out $50K as a Capital Dividend (CDA)
What about the other $50K. Is it eligible for refundable dividend tax on hand credit?. Assuming I issue a normal dividend for the other half.
Thanks,
Alex
Thank you for your question. The remaining $50,000 can be paid as a taxable dividend (other than eligible). This taxable dividend allows the company to recover part or all of the balance in the corporation's RDTOH account.