Canadian groups that pay intercorporate dividends should be prepared to respond to possible queries from the CRA. As part of its ongoing audit activities, the CRA is requesting information regarding intercorporate dividends, including safe income calculations, adjusted cost base and paid-up capital schedules, and the purpose of each dividend paid, among other information.
KPMG has a national Corporate Reorganizations team that can help corporate groups navigate the complex rules that can apply to intercorporate dividends and prepare for possible CRA queries.
