/ 77
(4) The amount of after-tax cash available to pay dividends (including the dividend refund
received as a result of the payment of the dividend) is not sufficient to obtain a full refund
of the RDTOH account in any of the provinces, with the exception of British Columbia,
Alberta, Ontario, Québec and New Brunswick.
For example, if a corporation in Newfoundland and Labrador earns interest income and pays
out all of its after-tax income (including its dividend refund) as a dividend, an amount equal
to 1% of its income will remain in its RDTOH account, calculated as follows:
Amount available for distribution
Corporate income
$ 1,000
Corporate tax
(487)
After-tax amount
513
Dividend refund
257
Available for distribution
$ 770
RDTOH account
Refundable tax (26
2
/
3
% × $1,000)
$ 267
Dividend refund (33
1
/
3
% of $770 dividend)
(257)
RDTOH balance
$ 10
Current as of September 30, 2013
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