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Feb 24, 2018 4:57 pm
Opco has paid management fee to Holdco. The company management wants to reflect it as dividends. In Opco the dividends will be charge against the retained earnings but in Holdco how will dividends be reflected in the p&l statement. I understand that intercorporate dividends are non taxable to holdco.
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Feb 27, 2018 5:02 pm
For accounting purposes, the holdco should record the dividends received as income. When the corporate tax return is prepared, a deduction can be claimed on the T2 return for the dividend received.