Which of the following statements with respect to non-eligible dividends paid in 2011 is correct?
A)The combined federal/provincial dividend tax credit will be equal to the gross up.
B)The recipient individual shareholder must gross them up by 41 percent.
C)Dividends paid by CCPCs are always non-eligible.
D)To the extent that the company has an LRIP balance, dividends paid by public compa- nies will be non-eligible.

Question

Quizplus · Accepted Answer

Non-eligible dividends are typically paid from a corporation's low rate income pool (LRIP). If a public company has an LRIP balance, dividends paid will be considered non-eligible.

Which of the Following Statements with Respect to Non-Eligible Dividends