If a Canadian controlled private corporation has a GRIP balance, it must designate any dividend that is paid as eligible until that balance is eliminated.

Question

Quizplus · Accepted Answer

A Canadian-controlled private corporation (CCPC) with a General Rate Income Pool (GRIP) balance has the option, but is not required, to designate dividends as eligible. It can choose to pay out non-eligible dividends instead, depending on its tax planning strategy.

If a Canadian Controlled Private Corporation Has a GRIP Balance