,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,SUBJECT3 ,,9COME ,,TAX ,,ACT
  ,TAXA# ,DIVID5DS ,RCVD AF #AIHG 0A
  ,SP\SE
,NUMB]3 ,,IT-#BIE;,R#D
,DATE3 ,APRIL #BG1 #AIIJ
,REF];E3 ,SUBSEC;N #HB7#C7 7AL SEC;N
  #ABA1 SUBSEC;N #GD.A7#A7 & P>AGRAPH
  #AAH7#A77A77

               ,APPLIC,N
    
  ,? BULLET9 APPLIES = TAX,N YE>S 5D+ AF
#AIHG4 ,= TAX,N YE>S 2F #AIHH1 SEE
,9T]PRET,N ,BULLET9 ,,IT-#BIE;,R#C DAT$
,M>* #B1 #AIHG4



                                      #A
                ,SUMM>Y              A#A
    
  ,? BULLET9 4CUSSES ! ELEC;N 69CLUDE 9
! TAXPAY]'S 9COME ALL TAXA# DIVID5DS F
TAXA# ,CANADIAN CORPOR,NS RCVD OR DEEM$
6H BE5 RCVD 0! TAXPAY]'S SP\SE IF S*
9CLU.N 9CR1SES ! TAXPAY]'S M>RI$ TAX
CR$IT4 ,! ELEC;N WD ORD9>ILY 2 MADE IF !
TAXPAY]'S CLAIM =! M>RI$ TAX CR$IT WD 2
REDUC$ Z A RESULT (! SP\SE'S RECEIPT (!
"PICUL> DIVID5DS &! SP\SE WD N 2 SUBJECT
6TAX4 ,DIVID5DS ON : ! TAXPAY] HAS
ELECT$ >E EXCLUD$ F ! SP\SE'S 9COME4 ,!
ELEC;N 5A#S ! C\PLE 6MAXIMIZE ! DIVID5D
TAX CR$IT &! M>RI$ TAX CR$IT1 "!BY
REDUC+ ! TAX PAYA#4

          ,4CUS.N & ,9T]PRET,N
    
#A4 ,9 A VALID ELEC;N "U SUBSEC;N
  #HB7#C71 ALL TAXA# DIVID5DS ACTU,Y
  RCVD1 OR DEEM$ 6BE RCVD1 0! SP\SE (A
  TAXPAY] F TAXA# ,CANADIAN CORPOR,NS >E
  DEEM$ 6BE RCVD 0! TAXPAY] & N ! SP\SE
  IF ! TAXPAY] S ELECTS 9 ! 9COME     #B
             ,,IT-#BIE;,R#D          B#A
  TAX RETURN =! YE> &A M>RI$ TAX CR$IT
  "U P>AGRAPH #AAH7#A77A7 7SEE ! CURR5T
  V].N ( ,,IT-#EAC1 ,P]SONAL ,TAX
  ,CR$ITS7 IS CR1T$ OR 9CR1S$4 ,ONCE AN
  ELEC;N HAS BE5 MADE X _C 2 REVOK$4 ,":
  ! TAXPAY] S ELECTS ! DIVID5DS >E
  EXCLUD$ 9 DET]M9+ ! SP\SE'S 9COME4 ,?
  ALL[S ! C\PLE 6TAKE ! BE/ ADVANTAGE (!
  DIVID5D TAX CR$IT &! M>RI$ TAX CR$IT Z
  ILLU/RAT$ 9 ! EXAMPLE 9 #D 2L4 ,AN
  ELEC;N "U SUBSEC;N #HB7#C7 IS N
  APPLICA# = DIVID5DS RCVD 0! SP\SE B
  DEEM$ 0! ATTRIBU;N RULES 7SUBSEC;N
  #GD7#A7 OR #GD.A7#A7 Z ! CASE MAY BE7
  6BE RCVD 0! TAXPAY]4
#B4 ,": 9T]E/ OR O!R *>GES >E 9CURR$ 0!
  SP\SE 6E>N TAXA# DIVID5DS & AN ELEC;N
  IS MADE "U SUBSEC;N #HB7#C71 ! ,ACT
  DOES N PROVIDE =! TRANSF] ( EXP5SES
  9CURR$ 0! SP\SE T RELATE 6! DIVID5DS
  TRANSF]R$ "U T SUBSEC;N4 ,H["E1 S*
  9T]E/ OR O!R *>GES : >E O!RWISE
  DEDUCTI# "U ! ,ACT1 MAY 2 DEDUCT$ AG/
  ANY O!R 9COME (! SP\SE4 ,! 9COME    #C
             ,,IT-#BIE;,R#D          C#A
  S REDUC$ W 2 !
--------------------------------------#B
  9COME (! SP\SE = PURPOSES ( -PUT+ !
  TAXPAY]'S M>RI$ TAX CR$IT "U P>AGRAPH
  #AAH7#A77A74 ,ON ! O!R H&1 ": ! SP\SE
  HAS NO 9COME OR 9SU6ICI5T 9COME
  6ABSORB ! 9T]E/ OR O!R *>GES1 A NON-
  CAPITAL LOSS IS CR1T$ EI 6! EXT5T (!
  9T]E/ OR O!R *>GES OR 6! EXT5T T !Y
  EXCE$ ! SP\SE'S 9COME4 ,FUR!RMORE1 !
  9T]E/ OR O!R *>GES 76! EXT5T T !Y FALL
  )9 ! DEF9I;N ( 89VE/;T EXP5SE0 9
  SUBSEC;N #AAJ.F7#A77 9CR1SE ! SP\SE'S
  CUMULATIVE NET 9VE/;T LOSS 0VIRTUE (
  7A7 (! DEF9I;N 9 SUBSEC;N #AAJ.F7#A74
#C4 ,ONLY DIVID5DS RCVD 0A SP\SE 9
  RESPECT ( :OM ! TAXPAY] IS 5TITL$ 6A
  M>RI$ TAX CR$IT "U P>AGRAPH
  #AAH7#A77A7 QUALIFY =! ELEC;N "U
  SUBSEC;N #HB7#C74
#D4 ,:E!R ELECT+ "U SUBSEC;N #HB7#C7 IS
  B5EFICIAL C ONLY 2 DET]M9$ 0-P>+ ! TAX
  PAYA# "U EA* ALT]NATIVE 7I4E41 MAK+1 &
  N MAK+1 ! ELEC;N74 ,AN EXAMPLE1     #D
             ,,IT-#BIE;,R#D          A#B
  BAS$ ON FIGURES =! #AIHH TAX,N YE>1 (!
  MANN] 9 : ^! RULES C APPLY FOLL[S3
  ,TAXPAY]'S 9COME3 4#BJ1JJJ NET 9COME2
    NO 9T]E/ OR DIVID5DS4
  ,SP\SE'S 9COME3 4#B1DJJ DIVID5DS PLUS
    4#FJJ GROSS-UP =A TOTAL ( 4#C1JJJ4
    4#CJJ 9T]E/ PD 6E>N DIVID5D 9COME4
  
                            ,TAXPAY]
                       ,NO
               ,SP\SE  ,ELEC;N  ,ELEC;N
,9COME """"""" 4#C1JJJ 4#BJ1JJJ 4#BC1JJJ
,9T]E/ PD """""" 4#CJJ -------- --------
,NET & ,TAXA#
  ,9COME """"" 4#B1GJJ 4#BJ1JJJ 4#BC1JJJ
,CALCUL,N (
  ,P]SONAL
  ,TAX ,CR$ITS
,BASIC
  ,P]SONAL
  ,AM.T """""" 4#F1JJJ  4#F1JJJ  4#F1JJJ


                                      #E
             ,,IT-#BIE;,R#D          B#B
,M>RI$ ,AM.T
  7,NOTE #A7   -------  4#B1HJJ  4#E1JJJ
,TOTAL ,AM.T   4#F1JJJ  4#H1HJJ 4#AA1JJJ
,TOTAL
  ,P]SONAL
  ,TAX ,CR$ITS
7#AG@3P (
  ,TOTAL
  ,AM.T7 """"" 4#A1JBJ  4#A1DIF  4#A1HGJ
,F$]AL ,9COME
  ,TAX
7#AG@3P (
  ,TAXA#
  ,9COME7 """""" 4#DEI  4#C1DJJ  4#C1IAJ
,SUBTRACT3
  7,NOTE #B7
,TOTAL
  ,P]SONAL
  ,TAX ,CR$ITS 4#A1JBJ  4#A1DIF  4#A1HGJ
,F$]AL
  ,DIVID5D
  ,TAX ,CR$ITS   4#DJJ  ------- "" 4#DJJ

                                      #F
             ,,IT-#BIE;,R#D          C#B
,TOTAL ,TAX
  ,CR$ITS """" 4#A1DBJ  4#A1DIF  4#B1BGJ
,BASIC ,F$]AL
  ,TAX ,PAYA#  NIL """" 4#A1IJD  4#A1FDJ

,NOTE #A3
  4#B1HJJ EQUALS 4#E1JJJ M9US 74#B1GJJ
  M9US 4#EJJ7

,NOTE #B3
  ,^! TAX CR$ITS D N GIVE RISE 6REFUNDA#
  AM.TS4

  ,?US 9 ! EXAMPLE X WD 2 B5EFICIAL =!
SP\SE &! TAXPAY] 6ELECT Z X REDUCES !
BASIC F$]AL TAX PAYA# 04#BFD4 ,! SP\SE
AL HAS A 4#CJJ NON-CAPITAL LOSS Z A
RESULT (! 9T]E/ : CD N 2 DEDUCT$4





                                      #G