# Dividend Refund of Connected Corporation **URL:** \ **Category:** Tax Topics\ **Created:** [June 26, 2026, 1:44pm UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527 "2026-06-26T13:44:04Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![dawna777](https://avatars.discourse-cdn.com/v4/letter/d/47e85d/32.png) [@dawna777](https://www.protaxcommunity.com/u/dawna777)\ **Post date:** [June 26, 2026, 1:44pm UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527/1 "2026-06-26T13:44:04Z")
Re: Sch3, Col 260 I am working on a Holdco which received a dividend from Opco. The dividend is $488k with generated NERDTOH of $171k. Holdco share of dividend refund $26k Opco did not claim a dividend refund on their return. Does Holdco have a requirement to pay their share of the dividend refund if it was not claimed by Opco? The Dividend Refund was generated but not claimed. It seems logical to me that they would have to pay their share of the Dividend Refund as they would not have working knowledge of the timing of the Div Refund claim in the future and would have no way to report it in the future. Its the wording in CRA T4012 that is confusing “to the extent that the payment of the dividends caused a dividend refund to the payer corporation” ![image](https://us1.discourse-cdn.com/flex016/uploads/taxcycle/original/2X/9/9c76d25a2fef285ffac8d12d8bb084c3dc85e39e.png) From Corp Tax Guide T4012 - Part IV taxes payable (amount Q) on: - eligible dividends received from non-connected corporations - taxable dividends received from connected corporations to the extent that the payment of the dividends caused a dividend refund to the payer corporation from its ERDTOH I would appreciate your input. ---
**Author:** ![chrisrodenhiser](https://avatars.discourse-cdn.com/v4/letter/c/a88e4f/32.png) [@chrisrodenhiser](https://www.protaxcommunity.com/u/chrisrodenhiser)\ **Post date:** [June 26, 2026, 2:22pm UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527/2 "2026-06-26T14:22:01Z")
From the limited information - related corporations ir not - but dividend was issued so taxes owing would be payable if indicated regardless of related or non related corp did not claim the benefit of claiming the declared dividend - so yes but I have limited info so take with grain of salt Why would opco not claim the benefit ??? ---
**Author:** ![theadman](https://avatars.discourse-cdn.com/v4/letter/t/7bcc69/32.png) [@theadman](https://www.protaxcommunity.com/u/theadman)\ **Post date:** [June 26, 2026, 2:59pm UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527/3 "2026-06-26T14:59:45Z")
im confused…how can a dividend refund be generated but not claimed? I’m not aware of any mechanism that allows for that ---
**Author:** ![dawna777](https://avatars.discourse-cdn.com/v4/letter/d/47e85d/32.png) [@dawna777](https://www.protaxcommunity.com/u/dawna777)\ **Post date:** [June 26, 2026, 3:30pm UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527/4 "2026-06-26T15:30:34Z")
I have requested that the post be taken down. I was working with incorrect information from the client. My apologies. ---
**Author:** ![chrisrodenhiser](https://avatars.discourse-cdn.com/v4/letter/c/a88e4f/32.png) [@chrisrodenhiser](https://www.protaxcommunity.com/u/chrisrodenhiser)\ **Post date:** [June 26, 2026, 3:43pm UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527/5 "2026-06-26T15:43:52Z")
No worries - I was thinking something was off on it - happens a lot ---
**Author:** ![BertMulderCGA](https://sea2.discourse-cdn.com/flex016/user_avatar/www.protaxcommunity.com/bertmuldercga/32/42_2.png) [@BertMulderCGA](https://www.protaxcommunity.com/u/BertMulderCGA)\ **Post date:** [June 27, 2026, 10:42am UTC](https://www.protaxcommunity.com/t/dividend-refund-of-connected-corporation/12527/6 "2026-06-27T10:42:15Z")