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2011 Tax Information
(based on payable date)
Tax info for Corporations is
reported on a Canada Customs & Revenue Agency T5 Form. The T5
Form is produced by the broker and mailed to the investor no later than
February 28. Please contact your broker regarding T5 enquiries.
Types of Income
Earned
- Capital
gains are taxed at
much lower
rates than
interest
income,
dividend
income and
foreign
source non
business
income. The
capital
gains
inclusion
rate was 50%
for 2010.
The T-3 or
T-5 you
receive from
your
investment
dealer will
show the
breakdown of
the capital
gains
received
from any of
the
Quadravest
products.
- Eligible
Canadian
Dividend
Income received
from
Canadian
companies
is taxed at
a much lower
rate than
interest
income. This
is because
the
corporation
has already
paid tax on
its earnings
before
paying a
dividend to
the Fund. On
your tax
return, you
actually
report a
grossed-up
dividend and
then claim
an
offsetting
dividend tax
credit. The
T-3 or T-5
you receive
from your
investment
dealer will
show the
breakdown of
the dividend
income
received
from any of
the
Quadravest
products.
- Return of
Capital (Non-taxable)
distributions received
must be used
by the
investor to
reduce the
adjusted
cost base (ACB)
of their
shares/units.
This will
impact the
capital
gains
realized by
each
investor
upon any
future
dispositions
of the
shares/units.
As an
example, if
a 50 cent
per unit
non-taxable
distribution
was received
during the
year, the
investor
would reduce
the cost
base of each
unit by 50
cents.
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