Form T2 Schedule 3 "Dividends Received, Taxable Dividends Paid, and Part IV Tax Calculation (2019 and Later Tax Years)" - Canada

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Download Form T2 Schedule 3 "Dividends Received, Taxable Dividends Paid, and Part IV Tax Calculation (2019 and Later Tax Years)" - Canada

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Clear Data
Schedule 3
Code 1902
Dividends Received, Taxable Dividends Paid, and
Protected B
Part IV Tax Calculation (2019 and later tax years)
when completed
Corporation's name
Business number
Tax year-end
Year
Month
Day
• Corporations must use this schedule to report:
– non-taxable dividends under section 83
– deductible dividends under subsection 138(6)
– taxable dividends deductible from income under section 112, subsection 113(2) and paragraphs 113(1)(a), (a.1), (b) or (d)
– taxable dividends paid in the tax year that qualify for a dividend refund (see page 3)
• All legislative references are to the federal Income Tax Act.
• The calculations in this schedule apply only to private or subject corporations.
• A payer corporation is connected with a recipient corporation at any time in a tax year, if at that time the recipient corporation meets
either of the following conditions:
– it controls the payer corporation, other than because of a right referred to in paragraph 251(5)(b)
– it owns more than 10% of the issued share capital (with full voting rights), and shares that have a fair market value of more than
10% of the fair market value of all shares of the payer corporation
• If you need more space, continue on a separate schedule.
• File this schedule with your T2 Corporation Income Tax Return.
Part 1 – Dividends received in the tax year
• Do not include dividends received from foreign non-affiliates.
• Complete columns B, C, D, H and I only if the payer corporation is connected.
Important instructions to follow if the payer corporation is connected
• If your corporation's tax year-end is different than that of the connected payer corporation, dividends could have been received from more than one
tax year of the payer corporation. If so, use a separate line to provide the information according to each tax year of the payer corporation.
• When completing column J and K use the special calculations provided in the notes.
A
B
C
Name of payer corporation
Enter 1 if payer
Business Number of
(from which the corporation received the dividend)
corporation is
connected corporation
connected
200
205
210
D
E
F
G
Tax year-end of the payer corporation in which
Non-taxable
Taxable dividends deductible from taxable income
Eligible dividends included
the sections 112/113 and subsection 138(6)
dividends under
under section 112, subsections 113(2) and 138(6), and
in column F
note 1
dividends in column F were paid YYYYMMDD
section 83
paragraphs 113(1)(a), (a.1), (b), or (d)
220
230
240
242
Total of column E
(enter amount on line 402 of Schedule 1)
1A
Taxable dividends received from connected corporations (total amounts from column F with code 1 in column B) . . . . . . . . . . . . . . .
1B
Taxable dividends received from non-connected corporations (total amounts from column F with no code in column B) . . . . . . . . . .
Subtotal (amount 1A plus amount 1B, include this amount on line 320 of the T2 Return)
1C
1D
Eligible dividends received from connected corporations (total amounts from column G with code 1 in column B) . . . . . . . . . . . . . . .
1E
Eligible dividends received from non-connected corporations (total amounts from column G with no code in column B) . . . . . . . . . . .
1
If taxable dividends are received, enter the amount in column F, but if the corporation is not subject to Part IV tax (such as a public corporation other than a
subject corporation as defined in subsection 186(3)), enter "0" in column J or column K whichever one applies. Life insurers are not subject to Part IV tax on
subsection 138(6) dividends.
Page 1 of 3
T2 SCH 3 E (20)
(Ce formulaire est disponible en français.)
Clear Data
Schedule 3
Code 1902
Dividends Received, Taxable Dividends Paid, and
Protected B
Part IV Tax Calculation (2019 and later tax years)
when completed
Corporation's name
Business number
Tax year-end
Year
Month
Day
• Corporations must use this schedule to report:
– non-taxable dividends under section 83
– deductible dividends under subsection 138(6)
– taxable dividends deductible from income under section 112, subsection 113(2) and paragraphs 113(1)(a), (a.1), (b) or (d)
– taxable dividends paid in the tax year that qualify for a dividend refund (see page 3)
• All legislative references are to the federal Income Tax Act.
• The calculations in this schedule apply only to private or subject corporations.
• A payer corporation is connected with a recipient corporation at any time in a tax year, if at that time the recipient corporation meets
either of the following conditions:
– it controls the payer corporation, other than because of a right referred to in paragraph 251(5)(b)
– it owns more than 10% of the issued share capital (with full voting rights), and shares that have a fair market value of more than
10% of the fair market value of all shares of the payer corporation
• If you need more space, continue on a separate schedule.
• File this schedule with your T2 Corporation Income Tax Return.
Part 1 – Dividends received in the tax year
• Do not include dividends received from foreign non-affiliates.
• Complete columns B, C, D, H and I only if the payer corporation is connected.
Important instructions to follow if the payer corporation is connected
• If your corporation's tax year-end is different than that of the connected payer corporation, dividends could have been received from more than one
tax year of the payer corporation. If so, use a separate line to provide the information according to each tax year of the payer corporation.
• When completing column J and K use the special calculations provided in the notes.
A
B
C
Name of payer corporation
Enter 1 if payer
Business Number of
(from which the corporation received the dividend)
corporation is
connected corporation
connected
200
205
210
D
E
F
G
Tax year-end of the payer corporation in which
Non-taxable
Taxable dividends deductible from taxable income
Eligible dividends included
the sections 112/113 and subsection 138(6)
dividends under
under section 112, subsections 113(2) and 138(6), and
in column F
note 1
dividends in column F were paid YYYYMMDD
section 83
paragraphs 113(1)(a), (a.1), (b), or (d)
220
230
240
242
Total of column E
(enter amount on line 402 of Schedule 1)
1A
Taxable dividends received from connected corporations (total amounts from column F with code 1 in column B) . . . . . . . . . . . . . . .
1B
Taxable dividends received from non-connected corporations (total amounts from column F with no code in column B) . . . . . . . . . .
Subtotal (amount 1A plus amount 1B, include this amount on line 320 of the T2 Return)
1C
1D
Eligible dividends received from connected corporations (total amounts from column G with code 1 in column B) . . . . . . . . . . . . . . .
1E
Eligible dividends received from non-connected corporations (total amounts from column G with no code in column B) . . . . . . . . . . .
1
If taxable dividends are received, enter the amount in column F, but if the corporation is not subject to Part IV tax (such as a public corporation other than a
subject corporation as defined in subsection 186(3)), enter "0" in column J or column K whichever one applies. Life insurers are not subject to Part IV tax on
subsection 138(6) dividends.
Page 1 of 3
T2 SCH 3 E (20)
(Ce formulaire est disponible en français.)
Clear Data
Protected B
when completed
Part 1 – Dividends received in the tax year (continued)
J
K
H
I
Part IV tax for eligible dividends.
Part IV tax before deductions.
Total taxable dividends paid by
Dividend refund of the
Dividends (from column G) multiplied by
Dividends (from column F)
connected payer corporation
connected payer corporation
note 3
note 4
(for tax year in column D)
note 2
38 1/3%
multiplied by 38 1/3%
(for tax year in column D)
250
260
265
275
Part IV tax before deductions on taxable dividends received from connected corporations
1F
(total amounts from column K with code 1 in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part IV tax before deductions on taxable dividends received from non-connected corporations
1G
(total amounts from column K with no code in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (amount 1F plus amount 1G)
1H
Part IV tax on eligible dividends received from connected corporations (total amounts from column J
1I
with code 1 in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part IV tax on eligible dividends received from non-connected corporations (total amounts from
1J
column J with no code in column B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (amount 1I plus amount 1J)
1K
1L
Part IV tax before deductions on taxable dividends (other than eligible dividends) (amount 1H minus amount 1K) . . . . . . . . . . . . . .
2
If the connected payer corporation's tax year ends after the corporation's balance-due day for the tax year (two or three months, as applicable), you have to
estimate the payer's dividend refund when you calculate the corporation's Part IV tax payable.
3
For eligible dividends received from connected corporations, Part IV tax on dividends is equal to: column I divided by column H multiplied by column G.
4
For taxable dividends received from connected corporations, Part IV tax on dividends is equal to: column I divided by column H multiplied by column F.
Part 2 – Calculation of Part IV tax payable
2A
Part IV tax on dividends received before deductions (amount 1H in part 1) . . . . . . . . . . . . . . . . . . . . .
320
Part IV.I tax payable on dividends subject to Part IV tax (from line 360 of Schedule 43) . . . . . .
Subtotal (amount 2A minus line 320)
2B
330
Current-year non-capital loss claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . . . . . . . . .
335
Non-capital losses from previous years claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . .
340
Current-year farm loss claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
345
Farm losses from previous years claimed to reduce Part IV tax . . . . . . . . . . . . . . . . . . . . . . . . .
Total losses applied against Part IV tax (total of lines 330 to 345)
2C
2D
Amount 2C multiplied by 38 1/3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
360
Part IV tax payable (amount 2B minus amount 2D, if negative enter "0") . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(enter amount on line 712 of the T2 return)
If your tax year begins after 2018, complete the following part to determine the required amount of Part IV taxes payable in order to calculate the eligible
refundable dividend tax on hand (ERDTOH) at the end of the tax year.
note 5
2E
Part IV tax before deductions on taxable dividends received from connected corporations
(amount 1F in part 1) . . . . . . . . . . . .
2F
Amount 4A from Schedule 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part IV tax payable on taxable dividends received from connected corporations (amount 2E minus amount 2F, if negative enter "0") . . . . . . . . . . . . . .
2G
(enter at amount L on page 7 of the T2 return)
5
To the extent of a dividend refund to the connected payer corporation from its eligible refundable dividend tax on hand (ERDTOH).
Otherwise, the amount 2E is nil.
Page 2 of 3
Clear Data
Protected B
when completed
Part 2 – Calculation of Part IV tax payable (continued)
If your tax year begins after 2018, complete the following part to determine the required amount of Part IV taxes payable in order to calculate the eligible
refundable dividend tax on hand (ERDTOH) at the end of the tax year.
2H
Part IV tax on eligible dividends received from non-connected corporations (amount 1J in part 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2I
Amount 4C from Schedule 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part IV tax payable on eligible dividends received from non-connected corporations (amount 2H minus amount 2I, if negative enter "0")
2J
(enter at amount M on page 7 of the T2 return)
Part 3 – Taxable dividends paid in the tax year that qualify for a dividend refund
If your corporation's tax year-end is different than that of the connected recipient corporation, your corporation could have paid dividends in more than
one tax year of the recipient corporation. If so, use a separate line to provide the information according to each tax year of the recipient corporation.
L
M
N
O
P
Name of connected recipient corporation
Business Number
Tax year-end of connected
Taxable dividends
Eligible dividends
recipient corporation in which the
paid to connected
included in
dividends in column O were
corporations
column O
received YYYYMMDD
400
410
420
430
440
(Total of column O) (Total of column P)
450
Total taxable dividends paid in the tax year to other than connected corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
455
Eligible dividends included in line 450 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
460
Total taxable dividends paid in the tax year that qualify for a dividend refund (total of column O plus line 450) . . . . . . . . . . . . .
465
Total eligible dividends paid in the tax year (total of column P plus line 455) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
470
Total non-eligible taxable dividends paid in the tax year (line 460 minus line 465) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Complete this part to determine the following amounts in order to calculate the dividend refund.
3A
Line 465 multiplied by 38 1/3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(enter at amount AA on page 7 of the T2 return)
3B
Line 470 multiplied by 38 1/3% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(enter at amount DD on page 7 of the T2 return)
Part 4 – Total dividends paid in the tax year
Complete this part if the total taxable dividends paid in the tax year that qualify for a dividend refund (line 460) is different from the total dividends paid
in the tax year.
500
Total dividends paid in the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
510
Dividends paid out of capital dividend account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
520
Capital gains dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
530
Dividends paid on shares described in subsection 129(1.2) . . . . . . . . . . . . . . . . . . . . . . . . .
Taxable dividends paid to a controlling corporation that was bankrupt at
540
any time in the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Subtotal (total of lines 510 to 540)
4A
4B
Total taxable dividends paid in the tax year that qualify for a dividend refund (Line 500 minus amount 4A) . . . . . . . . . . . . . . .
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