Course: The Dangers in Dividends

This half-day course will focus solely on dividends.

Topics to be covered include:

• Taxable Dividends vs. Capital Dividends
• Eligible vs. Ineligible Dividends
• Proposed 55(2) rules including:
o new purpose tests
o impact of proposed subsection 55(2.5) on how to calculate “significant reduction” in FMV
o Practical impact of proposed 55(2) rules:
• Related and unrelated party butterflies:
o 55(3)(a)
o 55(3)(b)
• Part IV Tax Basics
• Planning around Part IV tax
• Avoiding Part IV tax circularity