Income Tax Act

Marginal note:Taxable dividends received

• 82 (1) In computing the income of a taxpayer for a taxation year, there shall be included

  • (a) the total of

    • (i) all amounts each of which is a taxable dividend received by the taxpayer in the year as part of a dividend rental arrangement of the taxpayer from a corporation resident in Canada or a taxable dividend received by the taxpayer in the year from a corporation resident in Canada that is not a taxable Canadian corporation,

    • (i.1) where the taxpayer is a trust, all amounts each of which is all or part of a taxable dividend (other than a taxable dividend described in subparagraph 82(1)(a)(i)) 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 non-resident at the end of the year, and

    • (ii) the amount, if any, by which

      • (A) the total of all amounts 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, other than an amount included in computing the income of the taxpayer because of subparagraph 82(1)(a)(i) or 82(1)(a)(i.1)

      exceeds

      • (B) where the taxpayer is an individual, the total of all amounts paid by the taxpayer in the year that are deemed by subsection 260(5) to have been received by another person as taxable dividends,

  plus

  • (b) where the taxpayer is an individual, other than a trust that is a registered charity, 1/4 of the amount determined under subparagraph 82(1)(a)(ii) in respect of the taxpayer for the year.

• Marginal note:Limitation as to subparagraph (1)(a)(i)

  (1.1) An amount shall be included in the amounts described in subparagraph 82(1)(a)(i) in respect of a taxable dividend received at any time as part of a dividend rental arrangement only where that dividend was received on a share acquired before that time and after April, 1989.

• Marginal note:Certain dividends received by taxpayer

  (2) Where by reason of subsection 56(4) or 56(4.1) or sections 74.1 to 75 of this Act or section 74 of the Income Tax Act, chapter 148 of the Revised Statutes of Canada, 1952, there is included in computing a taxpayer’s income for a taxation year a dividend received by another person, for the purposes of this Act, the dividend shall be deemed to have been received by the taxpayer.

• Marginal note:Dividends received by spouse or common-law partner

  (3) Where the amount that would, but for this subsection, be deductible under subsection 118(1) by reason of paragraph 118(1)(a) in computing a taxpayer’s tax payable under this Part for a taxation year is less than the amount that would be so deductible if no amount were required by subsection 82(1) to be included in computing the income for the year of the taxpayer’s spouse or common-law partner and the taxpayer so elects in the taxpayer’s return of income for the year under this Part, all amounts described in paragraph 82(1)(a) received in the year from taxable Canadian corporations by the taxpayer’s spouse or common-law partner shall be deemed to have been so received by the taxpayer and not by the spouse or common-law partner.