[Verse 1] When a corporation shares its wealth around Four different paths where money can be found Paid-up capital sits like bedrock strong The foundation where distributions belong PUC protects what shareholders first paid in Tax-free return when corporate life begins [Chorus] Eligible dividends get the royal treatment Gross-up and credit, sweet tax agreement Non-eligible gets smaller breaks to claim Capital dividends play a different game Remember the four - they each have their dance Distributions that give your wallet a chance [Verse 2] Eligible dividends from public companies shine Gross them up by thirty-eight percent in line Then claim your credit when April comes around Non-eligible from small biz can be found Twenty-seven percent gross-up takes the stage Lower credits written on the tax page [Chorus] Eligible dividends get the royal treatment Gross-up and credit, sweet tax agreement Non-eligible gets smaller breaks to claim Capital dividends play a different game Remember the four - they each have their dance Distributions that give your wallet a chance [Bridge] Capital Dividend Account tracks the score Tax-free gains from sales of years before Half the capital gain sits waiting there Distribute it out without tax despair Section eighty-four watches every move When redemptions and wind-ups need to prove [Verse 3] Return of capital pulls from PUC pool No immediate tax - that's the golden rule But watch your basis shrink with every draw When it hits zero, dividend by law Share redemptions trigger deemed events Proceeds minus PUC - that's where tax invents [Outro] Four corporate roads your money travels down PUC, dividends, capital around Master each pathway, know where taxes hide Canadian corporate distributions as your guide
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