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Feb 22, 2017 3:31 pm
You mentioned "if corporation has a balance in its Refundable Dividend Tax on Hand (RDTOH) account, it will receive a tax refund at a rate of $1 for every $3 of dividends paid to you". does cra send cheque. how do I report it in my books and T2 Corp Tax return. Thanks.
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Feb 22, 2017 3:35 pm
The 'refund' is in the form of a refundable credit on Schedule 200 of the T2 corporate tax return. Therefore, the credit will increase the company's corporate tax refund or reduce its corporate tax liability. A cheque is not mailed out for RDTOH.