The Federal Tax Credits Blog

Question: As a Canadian, which stocks’ dividends can be used to receive the enhanced dividend tax credit?

I know that to be eligible for the enhanced dividend tax credit, the company must be Canadian. My concern is that for stocks like Bank of Nova Scotia (BNS) or Advantage Energy Income Fund (AAV), it seems to me that these stocks only pay dividends on the NYSE. The TSE versions of these stocks do not show as dividend-paying stocks. So, my main question is if I own NYSE:BNS, am I eligible for the enhanced dividend tax credit even though the stock is on the New York exchange? Hopefully my question is not too confusing!!

Answer: The criteria is that it is a Canadian Controlled Corporation. Which market it is listed on is irrelevant.

However, make sure that you are buying shares in the Canadian corporation, not the US based subsidiary, which may not qualify.

The reason I say this is that I’ve never heard of a corporation only paying dividends on shares sold on one market, unless that is a different share type (i.e preferred as opposed to common). If it’s one class of shares, it matters not where you buy/sell them.

Hudson Valley CASH Coalition starting its tax lessons

The Hudson Valley CASH Coalition kicked off its annual initiative to provide free tax preparation services to low-income workers and help them apply for the Earned Income Tax Credit.

What would you do with an extra $13?

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