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Hi Alan,
I have a ccpc corporation which is dissolved. There are 2 50/50 shareholders on it which own equal C/S. We have $12,000 cash in the corporate bank account. How can we withdraw it from the company?
Would a t5 non elig dividend have to be issued out?
How would it be reported on the T2 (Balance sheet and Income Statement)
Thank you for your time
First, repay any shareholder debt owing. This is tax-free and the repayment is recorded as a reduction of the shareholder debt. Second, pay a taxable dividend (other than eligible) to the shareholders to the extent the company has any retained earnings. A dividend is reported on a T5 slip and is treated as a reduction of retained earnings.