Hi AnnaR,

You can wait for other accountants and bookkeeper to share this with you in the forum or contact one of our accountant and bookkeeper partner by following the link below.

http://na.sage.com/ca/accountant/locator

Hope this helps.

AnnaR:

You will have to prepare a T5 and T5 Summary. If you prepare their corporate returns then Schedule 3 will need to be prepared

Thanks Randy. Is there a way to mention this is tax-free?

AnnaR:

If this is a non-profit or a charitable org then it will be handled differently on the T2 return and maybe tax-free. I would have to look at the numbers, the type of org, etc..

the holding company is not a non-profit or charitable org.

The dividend was paid from the retained earnings of the sub company after tax. So the holding company should not be taxed again for the amount it received.

will schedule 3 accomplish this?