• T2054 - Election for a Capital Dividend Under Subsection 83(2)

Private corporations can use this form to elect to have the provisions of subsection 83(2) apply to a dividend. For more information, see Income Tax Folio S3-F2-C1, Capital Dividends and Interpretation Bulletin IT-149, Winding-up Dividend.

Unless otherwise stated, all legislative references are to the Income Tax Act and Income Tax regulations.

Complete and mail this election, separately from any other return, on or before the earlier of:

• the day the dividend becomes payable

• the first day on which any part of the dividend was paid

If the election is filed after the date it is due, the corporation must pay an estimate of the penalty with respect to the election when the election is made. See "Part 4 – Late-filing penalty" for details.

Send to:
Prince Edward Island Tax Centre
275 Pope Road
Summerside, PE  C1N 6A2