Ms. Copeland has invested in the common shares of a number of large Canadian public companies, all of which pay eligible dividends. She has no intention of selling the shares in the foreseeable future. She has asked your advice as to whether there would be either tax deferral or tax savings if she transferred these shares to a private company. She would be the only shareholder of this new company. Ms. Copeland has sufficient other sources of income that she is in the 29 percent federal tax bracket. She lives in a province where her marginal tax rate is 12 percent and the provincial dividend tax credit on both eligible and non-eligible dividends is equal to 25 percent of the dividend gross up.

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The Answer of Ms. Copeland has invested in the common shares of a number of large Canadian public companies, all of which pay eligible dividends. She has no intention of selling the shares in the foreseeable future. She has asked your advice as to whether there would be either tax deferral or tax savings if she transferred these shares to a private company. She would be the only shareholder of this new company. Ms. Copeland has sufficient other sources of income that she is in the 29 percent federal tax bracket. She lives in a province where her marginal tax rate is 12 percent and the provincial dividend tax credit on both eligible and non-eligible dividends is equal to 25 percent of the dividend gross up.

Ms Copeland Has Invested in the Common Shares of a Number