When there is deemed dividend resulted under section 84, and the company has no safe income, Do we just simply enter the actual dividend amount, and leave out the gross up and dividend tax credit. When I did few T5 last year through CRA webform, I think the gross up and dividend tax was auto populated. Just reviewed T4015, didnt have much info there.
If the deemed dividend is paid to a corporation then there is no gross up. If the dividend is paid to an individual or trust there is a gross up.
If there is a section 84 deemed dividend paid to a corporation but there is no safe income then subsection 55(2) could apply to re-characterize the dividend as a capital gain.
If there is a section 84 deemed dividend paid to an individual then safe income on hand is not a consideration.
FYI: In TaxCylce, when preparing T5’s, if you select Corporation as “Recipient Type” it will not populate the Taxable amount of dividend fields.