Do you own shares in a foreign corporation?
If you have received foreign spin-off shares, then you may be overpaying on your income taxes. Under section 86.1 of the Income Tax Act, an eligible shareholder can file an election with respect to certain eligible spin-off shares. The election allows a qualifying shareholder to be exempt from treating the spin-off shares as a taxable foreign dividend. Instead there is a cost base reduction which means taxes will only be paid when the shares are sold and at the capital gains rate. Refer to the CRA list of eligible spin-offs at: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/spnffs-eng.html
If you think this might impact you or have questions, contact us.