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I-3 - Taxation Act
Section 497
Disposition versions
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the amount by which the aggregate of all amounts, other than eligible dividends or amounts described in any of subparagraphs c to e, received by the taxpayer in the year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends exceeds, if the taxpayer is an individual, the aggregate of all amounts each of which is, or is deemed under subparagraph b of the third paragraph of section 21.33.2 to have been, paid by the taxpayer in the year and deemed under section 21.32 to have been received by another person as a taxable dividend (other than an eligible dividend);
(b) the amount by which the aggregate of all amounts, other than amounts included in computing the taxpayer’s income because of any of subparagraphs c to e, received by the taxpayer in the year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends exceeds, if the taxpayer is an individual, the aggregate of all amounts each of which is, or is deemed under subparagraph b of the third paragraph of section 21.33.2 to have been, paid by the taxpayer in the year and deemed under section 21.32 to have been received by another person as an eligible dividend;
(c) the aggregate of the taxable dividends received by the taxpayer at any time in the year on a share acquired before that time and after 30 April 1989 from corporations resident in Canada under a dividend rental arrangement of the taxpayer;
(d) the aggregate of the taxable dividends, other than taxable dividends described in subparagraph c, received by the taxpayer in the year from corporations resident in Canada that are not taxable Canadian corporations; and
(e) if the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend described in subparagraph c or d, that was received by the trust in the year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the year.
The taxpayer shall also include, in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, the aggregate of
(a) the product obtained by multiplying the excess amount determined in respect of the taxpayer under subparagraph a of the first paragraph for the year by
i. 16%, for the taxation year 2018, and
ii. 15%, for a taxation year subsequent to the taxation year 2018; and
(b) 38% of the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the year.
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the amount by which the aggregate of all amounts, other than eligible dividends or amounts described in any of subparagraphs c to e, received by the taxpayer in the year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends exceeds, if the taxpayer is an individual, the aggregate of all amounts each of which is, or is deemed under subparagraph b of the third paragraph of section 21.33.2 to have been, paid by the taxpayer in the year and deemed under section 21.32 to have been received by another person as a taxable dividend (other than an eligible dividend);
(b) the amount by which the aggregate of all amounts, other than amounts included in computing the taxpayer’s income because of any of subparagraphs c to e, received by the taxpayer in the year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends exceeds, if the taxpayer is an individual, the aggregate of all amounts each of which is, or is deemed under subparagraph b of the third paragraph of section 21.33.2 to have been, paid by the taxpayer in the year and deemed under section 21.32 to have been received by another person as an eligible dividend;
(c) the aggregate of the taxable dividends received by the taxpayer at any time in the year on a share acquired before that time and after 30 April 1989 from corporations resident in Canada under a dividend rental arrangement of the taxpayer;
(d) the aggregate of the taxable dividends, other than taxable dividends described in subparagraph c, received by the taxpayer in the year from corporations resident in Canada that are not taxable Canadian corporations; and
(e) if the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend described in subparagraph c or d, that was received by the trust in the year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the year.
The taxpayer shall also include, in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, the aggregate of
(a) 17% of the excess amount determined in respect of the taxpayer under subparagraph a of the first paragraph for the year; and
(b) the product obtained by multiplying the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the year by
i. 45%, for the taxation year 2009,
ii. 44%, for the taxation year 2010,
iii. 41%, for the taxation year 2011, and
iv. 38%, for a taxation year subsequent to the taxation year 2011.
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the amount by which the aggregate of all amounts, other than eligible dividends or amounts described in any of subparagraphs c to e, received by the taxpayer in the year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends exceeds, if the taxpayer is an individual, the aggregate of all amounts each of which is, or is deemed under subparagraph b of the third paragraph of section 21.33.2 to have been, paid by the taxpayer in the year and deemed under section 21.32 to have been received by another person as a taxable dividend (other than an eligible dividend);
(b) the amount by which the aggregate of all amounts, other than amounts included in computing the taxpayer’s income because of any of subparagraphs c to e, received by the taxpayer in the year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends exceeds, if the taxpayer is an individual, the aggregate of all amounts each of which is, or is deemed under subparagraph b of the third paragraph of section 21.33.2 to have been, paid by the taxpayer in the year and deemed under section 21.32 to have been received by another person as an eligible dividend;
(c) the aggregate of the taxable dividends received by the taxpayer at any time in the year on a share acquired before that time and after 30 April 1989 from corporations resident in Canada under a dividend rental arrangement of the taxpayer;
(d) the aggregate of the taxable dividends, other than taxable dividends described in subparagraph c, received by the taxpayer in the year from corporations resident in Canada that are not taxable Canadian corporations; and
(e) if the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend described in subparagraph c or d, that was received by the trust in the year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the year.
The taxpayer shall also include, in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, the aggregate of
(a) 18% of the excess amount determined in respect of the taxpayer under subparagraph a of the first paragraph for the year; and
(b) the product obtained by multiplying the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the year by
i. 45%, for the taxation year 2009,
ii. 44%, for the taxation year 2010,
iii. 41%, for the taxation year 2011, and
iv. 38%, for a taxation year subsequent to the taxation year 2011.
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the amount by which the aggregate of all amounts, other than an eligible dividend or an amount described in any of subparagraphs c to e, received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends, exceeds, if the taxpayer is an individual, the aggregate of all amounts paid by the taxpayer in the taxation year that are deemed, under section 21.32, to have been received by another person as taxable dividends, other than an eligible dividend;
(b) the amount by which the aggregate of all amounts, other than an amount included in computing the taxpayer’s income because of any of subparagraphs c to e, received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends, exceeds, if the taxpayer is an individual, the aggregate of all amounts paid by the taxpayer in the taxation year that are deemed, under section 21.32, to have been received by another person as eligible dividends;
(c) the aggregate of the taxable dividends received by the taxpayer at any time in the taxation year on a share acquired before that time and after 30 April 1989 from corporations resident in Canada under a dividend rental arrangement of the taxpayer;
(d) the aggregate of the taxable dividends, other than a taxable dividend described in subparagraph c, received by the taxpayer in the taxation year from corporations resident in Canada that are not taxable Canadian corporations; and
(e) if the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend described in subparagraph c or d, that was received by the trust in the taxation year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the taxation year.
The taxpayer shall also include, in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, the aggregate of
(a) 18% of the excess amount determined in respect of the taxpayer under subparagraph a of the first paragraph for the taxation year; and
(b) the product obtained by multiplying the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the taxation year by
i. 45%, for the taxation year 2009,
ii. 44%, for the taxation year 2010,
iii. 41%, for the taxation year 2011, and
iv. 38%, for a taxation year subsequent to the taxation year 2011.
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the amount by which the aggregate of all amounts, other than an eligible dividend or an amount described in any of subparagraphs c to e, received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends, exceeds, if the taxpayer is an individual, the aggregate of all amounts paid by the taxpayer in the taxation year that are deemed, under section 21.32, to have been received by another person as taxable dividends, other than an eligible dividend;
(b) the amount by which the aggregate of all amounts, other than an amount included in computing the taxpayer’s income because of any of subparagraphs c to e, received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends, exceeds, if the taxpayer is an individual, the aggregate of all amounts paid by the taxpayer in the taxation year that are deemed, under section 21.32, to have been received by another person as eligible dividends;
(c) the aggregate of the taxable dividends received by the taxpayer at any time in the taxation year on a share acquired before that time and after 30 April 1989 from corporations resident in Canada under a dividend rental arrangement of the taxpayer;
(d) the aggregate of the taxable dividends, other than a taxable dividend described in subparagraph c, received by the taxpayer in the taxation year from corporations resident in Canada that are not taxable Canadian corporations; and
(e) if the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend described in subparagraph c or d, that was received by the trust in the taxation year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the taxation year.
The taxpayer shall also include, in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, the aggregate of
(a) 25% of the excess amount determined in respect of the taxpayer under subparagraph a of the first paragraph for the taxation year; and
(b) the product obtained by multiplying the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the taxation year by
i. 45%, for the taxation year 2009,
ii. 44%, for the taxation year 2010,
iii. 41%, for the taxation year 2011, and
iv. 38%, for a taxation year subsequent to the taxation year 2011.
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the amount by which the aggregate of all amounts, other than an eligible dividend or an amount described in any of subparagraphs c to e, received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, taxable dividends, exceeds, if the taxpayer is an individual, the aggregate of all amounts paid by the taxpayer in the taxation year that are deemed, under section 21.32, to have been received by another person as taxable dividends, other than an eligible dividend;
(b) the amount by which the aggregate of all amounts, other than an amount included in computing the taxpayer’s income because of any of subparagraphs c to e, received by the taxpayer in the taxation year from corporations resident in Canada as, on account of, in lieu of payment of or in satisfaction of, eligible dividends, exceeds, if the taxpayer is an individual, the aggregate of all amounts paid by the taxpayer in the taxation year that are deemed, under section 21.32, to have been received by another person as eligible dividends;
(c) the aggregate of the taxable dividends received by the taxpayer at any time in the taxation year on a share acquired before that time and after 30 April 1989 from corporations resident in Canada under a dividend rental arrangement of the taxpayer;
(d) the aggregate of the taxable dividends, other than a taxable dividend described in subparagraph c, received by the taxpayer in the taxation year from corporations resident in Canada that are not taxable Canadian corporations; and
(e) if the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend described in subparagraph c or d, that was received by the trust in the taxation year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered to have been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the taxation year.
The taxpayer shall also include, in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, the aggregate of
(a) 25% of the excess amount determined in respect of the taxpayer under subparagraph a of the first paragraph for the taxation year; and
(b) 45% of the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the taxation year.
497. A taxpayer shall include, in computing the taxpayer’s income for a taxation year, the aggregate of
(a) the aggregate of all amounts each of which is a taxable dividend received by the taxpayer at any time in the year on a share acquired before that time and after 30 April 1989 from a corporation resident in Canada as part of a dividend rental arrangement of the taxpayer or a taxable dividend received by the taxpayer in the year from a corporation resident in Canada that is not a taxable Canadian corporation;
(a.1) where the taxpayer is a trust, the aggregate of all amounts each of which is all or part of a taxable dividend, other than a dividend referred to in subparagraph a, that was received by the trust in the year on a share of the capital stock of a taxable Canadian corporation and that can reasonably be considered as having been included in computing the income of a beneficiary under the trust who was not resident in Canada at the end of the year; and
(b) the amount by which the aggregate of all amounts received by the taxpayer in the year from corporations resident in Canada as full or partial payment of taxable dividends, other than an amount included in computing the taxpayer’s income by reason of subparagraph a or a.1, exceeds, where the taxpayer is an individual, the aggregate of the amounts paid by the taxpayer in the year after 31 May 1989 that are deemed, under section 21.32, to have been received by another person as taxable dividends.
The taxpayer shall also include in computing the taxpayer’s income for a taxation year, if the taxpayer is an individual, other than a trust that is a registered charity, 1/4 of the excess amount determined in respect of the taxpayer under subparagraph b of the first paragraph for the year.
