Question

When calculated RDTOH do we consider both dividends paid and declared in the year?

When calculated RDTOH do we consider both dividends paid and declared in the year?

Homework Answers

Answer #1

For calculating RDTHO only dividend paid is considered.

To calculate the RDTOH at the end of the tax year, add the following amounts:

  • the RDTOH balance at the end of the previous tax year (minus any dividend refund issued to the corporation in the previous year)
  • the refundable portion of Part I tax from line 450
  • Part IV tax calculated on line 360 of Schedule 3
  • any balance of RDTOH transferred from a predecessor corporation on amalgamation, or from a wound-up subsidiary corporation
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