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Unformatted text preview: CCPC Non- CCPC U U o This company may have been a CCPC and subject to the lower tax rate and has a balance of LRIP amounts. Example: CCPC has a GRIP account and it is calculated as follows: 68% of [$500,000 - $400,000] = $68,000 (using the effective tax rate of 32%) • 68% equals to the after-tax amounts eligible for distributions as a dividend. • Qualify as Eligible dividends, and subject to 45% GU and 11/18 + 7/18 DTC. • CCPC can pay out an Eligible dividend as long as it has a GRIP balance at the end of the year. Tax Rate : CCPC (all income eligible for SBD) 38-10 +1.12 (4% of 28%)-16 13.12 +8 (prov.) 21.12 Non-CCPC (Public Cos.) 38-10 +1.12 (4% of 28%)- 7 22.12 +10 (prov) 32.12...
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- Winter '09
- Dividends, Taxation in the United States, CCPC, Eligible dividends