While preparing T2 return, I have shown a private small corporation which is incorporated in Canada by a non-resident, under Type of Corporation as “Other private corporation” in T2 return. Did I select a correct option? I shall appreciate if someone guide me in this respect. Thanks.
In basic terms: If the corporation is majority controlled by a non-resident, than it forfeits it’s CCPC status and is taxed at the general rate, along with recourse subjectivity to its non-resident distributions.
You need to indicate on the ID page that the corporation is not a CCPC. You are correct to select “other private corporation”.
Schedule 19 & 29 are applicable.