Hi everyone, I have a question - the client dissolved the company in Oct and has an Oct year end, the final T2 return was filed up to dissolution date. After the final filing and CRA issued NERDTOH refund, and now the client received a T5 (interest income) issued to the corporation. Would this interest income be seen as shareholder income since the company no longer exists? Or do we need to refile T2 even though everything is closed? Thank you for your time!
I would say it depends on when the income was earned. Was it interest earned on a property that was distributed to the shareholder? Or was it interest earned on the property before it was liquidated by the corporation or distributed by it? If the latter then it would seem an amended T2 should be filed. Also be sure to double-check that the interest income represented by this T5 wasn’t already reported by the corporation.
I have one of those. The interest was earned and received before dissolution and reported in the final return. No action needed.
Thank you. Part of the interest was reported on final T2, the remaining was earned after dissolution date.
So the corp held property after dissolution?
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