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2005
2006
2007
2007 Tax Information
(based on payable date)
Tax info for
Corporations is reported on a Canada Customs & Revenue
Agency T5 Form. The T5 Form is produced by the broker
and mailed to the investor no later than February 29. Please
contact your broker regarding T5 enquiries.
Types
of Income Earned
- Capital gains
are taxed at much lower rates than interest income,
dividend income and foreign source non business income.
The capital gains inclusion rate was 50% for 2007. The
T-3 or T-5 you receive from your investment dealer will
show the breakdown of the capital gains received from
any of the Quadravest products.
- Eligible Canadian Dividends
received from Canadian companies are taxed at a much
lower rate than interest income. This is because the
corporation has already paid tax on its earnings before
paying a dividend to the Fund. On your tax return, you
actually report a grossed-up dividend and then claim an
offsetting dividend tax credit. The T-3 or T-5 you
receive from your investment dealer will show the
breakdown of the dividend income received from any of
the Quadravest products.
- Return of Capital (Non-taxable) distributions
received must be used by the investor to reduce the
adjusted cost base (ACB) of their shares/units. This
will impact the capital gains realized by each investor
upon any future dispositions of the shares/units. As an
example, if a 50 cent per unit non-taxable distribution
was received during the year, the investor would reduce
the cost base of each unit by 50 cents.
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