CO-502, Election In Respect Of A Dividend Paid Out Of A Capital ...

Skip To Main Content

• placeholder

Filter:

• All Files

Submit Search You are here: CCH iFirm Tax T2 2021 v.2.0 (2021.40.32) CO-502, Election in Respect of a Dividend Paid Out of a Capital Dividend Account

Private corporations can use this multiple copy form to elect to apply the provisions of section 502 of the Québec Taxation Act to a dividend. However, the dividend for which this election is made cannot exceed the capital dividend account (CDA) balance, which is calculated in Schedule 89 (Jump Code: 89).

Data entered in federal Form T2054, Election for a Capital Dividend Under Subsection 83(2) (Jump Code: 2054) will be automatically transferred to Form CO-502. However, additional Québec information must be entered on lines 10, 41, 42 and 44 of Form CO-502.

Required Information

The form becomes applicable when all of the following conditions are met:

• a dividend amount for which this election is made is entered on line 20 of Part 3;
• it is indicated that the corporation is a private corporation (either a CCPC or another private corporation) in the “General information” section; and
• the corporation is resident in Canada according to the “Corporate residence” section of Form Identification, Corporate identification and other information (Jump Code: ID).

Late-filing Penalty

Any corporation that files this election after the due date is subject to a late-filing penalty. The due date for the election is the earlier of:

• the day the dividend becomes payable; and
• the first day on which any portion of the dividend was paid.

Election and certification

If the “Name of authorized officer” field in Part 7 of Form T2054 (Jump Code: 2054) is subject to an override in Form T2054 (Jump Code: 2054), the “Area code Telephone” and “Extension” fields in Part 5 of Form CO-502 will be input fields. Otherwise, these fields will be completed automatically based on the information entered in the “Certification” section of Form Identification (Jump Code: ID).

Filing

Note that this form must be filed separately from any other return and it must be mailed to Revenu Québec at 3800, rue de Marly, Québec (Québec) G1X 4A5 on or before the election due date.

See Also

Schedule 89, Request for Capital Dividend Account Balance Verification

T2054, Election for a Capital Dividend Under Subsection 83(2)

Guides

• T2 Corporation - Income Tax Guide 2018 (CRA)
• Guide de la déclaration de revenus des sociétés (available in French only) (Revenu Québec)

Support

• Knowledge Base
• CCH iFirm Taxprep Release Notes
• CCH iFirm Cantax Release Notes

Useful Links

• Government of Canada
• Revenu Québec
• Government of Alberta
• Consult our Status page
• Send feedback

About us

• About Wolters Kluwer
• Career Opportunities
• Join us

• 
• 
• 
• 

PrivacyTerms and conditions© 2021 Wolters Kluwer Canada Limited.wolterskluwer.ca