If a trust receives eligible dividends and does not distribute them or allocate them to a beneficiary, the trust will be eligible for the usual dividend tax credit on such dividends.

Question

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Trusts, like individuals, can be eligible for the dividend tax credit on eligible dividends they receive, provided these dividends are not distributed or allocated to beneficiaries, allowing the trust to reduce its tax liability on dividend income.

If a Trust Receives Eligible Dividends and Does Not Distribute