Line 604 - Refundable tax on CCPC's investment income
Line 604 - Refundable tax on CCPC's investment income
An additional refundable tax of 10 2/3% is levied on the investment income (other than deductible dividends) of a corporation that is a CCPC throughout a tax year and, for tax years starting after April 6, 2022, that is a substantive CCPC at any time in the tax year.
The additional tax may be part of the refundable portion of Part I tax on line 450 and would be added to the non-eligible refundable dividend tax on hand (NERDTOH) pool. Amounts added to the NERDTOH pool will be refunded when taxable dividends (other than eligible dividends) are paid to shareholders (at a rate of 38 1/3% of such dividends paid).
A CCPC (or a substantive CCPC to which the additional tax applies) with investment income has to calculate this additional tax on page 8 and enter the amount on line 604.
References
Section 123.3
Subsections 129(1) and 129(4)
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