Understanding Corporate Investment Tax Part 2 – Refundable Dividend Tax On Hand (RDTOH) and Taxation of Dividends and Interest Income in a CCPC

This is the second post in the investment tax series – reading the first post here is essential to understand the next step of discussing the most complicated mechanism in the corporate investment tax structure, the RDTOH. The goal of this blog is to make investment concepts easier to understand by using basic explanations. The RDTOH is the toughest one yet to explain but I will try my best. I have found proper understanding of this post has taken a

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Understanding Corporate Investment Income Tax Part 1 –  Capital Gains and the Capital Dividend Account

  Apologies for the long hiatus. I felt hesitant to write any further advice since the corporate tax change proposals have created a climate of uncertainty. While the uncertainty will persist for a while longer, the last announcement found here talks specifically about corporate passive investment income with a threshold of $50,000/year before more onerous taxation kicks in. As I scrambled to review my corporate holdings to see if I currently exceed the threshold, I realized investment income tax treatment

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