It’s been too long, and I’ve forgotten all about how this works…
I have a client who wants to shut down his company (retiring). He has an ERDTOH balance on account and I’ve completely forgotten how to deal with that. Any help is appreciated. Note: the RDTOH and NERDTOH are zero.
If there is a GRIP balance, issue eligible dividends. Otherwise issue regular dividends - if there is no NERDTOH balance, regular dividends will generate the divided refund from the ERDTOH balance.
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Besides the point that were mentioned by @Nezzer, I would probably check first to see what the position of the company is with regards to its safe income. If you have enough safe income to carry forward, it might be worth waiting to clear the RDTOH until its triggered by the provisions of section 84 on dissolution (i.e. deemed dividend). Food for thought.