RDTOH and Dividend Refund System

Canadian Tax Essentials: Personal & Corporate · 3:17

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Lyrics

[Verse 1]
When corporations earn their passive income streams
Investment dollars flowing through their schemes
The government takes tax upon that gain
But promises a refund through this chain
RDTOH account starts building up the store
Each dollar taxed means refunds at the door

[Chorus]
Refundable dividend tax on hand
RDTOH helps integration stand
When taxable dividends flow outside
The refund comes back to your corporate side
One dollar out means one-third back in
Keep the tax integration engine spinning

[Verse 2]
Eligible RDTOH from public shares
Non-eligible from other income bears
Thirty-eight point thirty-three's the rate
For eligible dividends that we create
Twenty-six point sixty-seven for the rest
Non-eligible pool puts refunds to the test

[Chorus]
Refundable dividend tax on hand
RDTOH helps integration stand
When taxable dividends flow outside
The refund comes back to your corporate side
One dollar out means one-third back in
Keep the tax integration engine spinning

[Bridge]
Integration means no double taxation
Individual rates through corporation
Pay it once whether direct or through the corp
RDTOH makes sure the system doesn't warp
Eligible and non-eligible pools
Following their own refunding rules

[Verse 3]
Calculate the refund when dividends are paid
One-third of taxable amount that's made
But never more than what's in the account
RDTOH balance is the maximum amount
Grind through the lesser of these two
Integration working just for you

[Chorus]
Refundable dividend tax on hand
RDTOH helps integration stand
When taxable dividends flow outside
The refund comes back to your corporate side
One dollar out means one-third back in
Keep the tax integration engine spinning

[Outro]
Investment income taxed then refunded clean
The smoothest integration you've ever seen
RDTOH keeps the system fair and true
Corporate and personal rates coming through

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