During the year, The Light Corporation paid $550,000 in preferred share dividends to ABC Inc. Both companies are Canadian corporations. Which of the following is TRUE?

Question

Quizplus · Accepted Answer

The Light Corporation, as the payer of the preferred share dividends, will be subject to Part VI.1 tax, which is a tax on dividends paid on certain preferred shares by Canadian corporations.

During the Year, the Light Corporation Paid $550,000 in Preferred