T2 - NERDTOH - creates refund?

Tax Topics
1

I have a corporation that only has investments and cash.

The corp has a NERDTOH (non-eligible refundable dividend tax on hand) of over $500,000 as of last year.

If the corp has zero income next year and pays a $100,000 dividend to me next year:
a) can that be classified as a non-eligible dividend?
b) does that not generate a refund to the corporation of $38,333?

2

(A) Yes, and it has to be a non-eligible dividend to access the NERDTOH.
(B) Yes.

You should check the balance with CRA through RAC just to be sure you have the right numbers. Sometimes things change and the info in your tax return might not match that from CRA.