Dividend Declared to SH (sole director)

A dividend was declared for year-end Dec 31, 2017.

BOX 10 (actual amount of dividend) $38,461.54
BOX 11 (taxable amount of dividend) $45,000.00

When completing T2 - Schedule 3 I enter $45,000 in Part 3 box 450.

Am I missing anything or is this sufficient?


You report the actual amount of the taxable dividend. “Taxable dividend” refers to the properties of the dividend rather than the amount. Otherwise, your GIFI, from the financial statements, or your working papers, will not agree with the schedule 3.


Agreed, and… to add to jhd’s comment, there is no provision for the receiving corporation to account for the FDTC.

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To clarify,
T5 box 10 Actual amount of dividends other than eligible dividends: $38,461.54 is entered in S3 box 450 Total taxable dividends paid in the tax year to other than connected corporations in T2?


Yes. The amount on sched.3 is the actual amount paid by the corp, 38461.54 for it’s fiscal year. If it has an off-calendar year end, then the amounts on sched.3 and the T5 can differ, but it’s always the amount booked in the corp.

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