CAPITAL DIVIDEND ACCOUNT – ECOLOGICAL GIFTS
In a December 3, 2015 French Technical Interpretation (2015-0613761E5, Seguin, Marc), CRA discussed the effect of an eligible ecological property gift (Paragraph 110.1(1)(d)) by a corporation on its capital dividend account (CDA).
the effect on CDA
When such a gift is made, the taxable capital gain pursuant to Paragraph 38(a.2)(i) is deemed to be $0, therefore, the addition to the CDA would be the full amount of the gain.
Editors’ Comment
The result in this case is similar to that where a publically traded security is gifted.
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