Corporate Tax - RDTOH, CDA and Other Tax Accounts

Note: This Live Virtual course is presented in collaboration with CPA Western Provinces. The content is applicable to all participants. If you have questions regarding this course, please contact pdregistration@cpaalberta.ca

Overview:

You will develop a practical framework for understanding and managing key notional tax accounts for private corporations, including GRIP, LRIP, ERDTOH, NERDTOH, and the CDA, and how they interact within Canada’s integration system. You will learn to plan across multiple accounts, anticipate ripple effects of transactions, and optimize annual distributions and elections.

Course Content:

In this course, you will gain knowledge about the following topics: 

• Integration basics and an account‑by‑account framework for planning.
• GRIP and LRIP: eligible vs. non‑eligible dividend capacity, designations, penalties, and practical considerations.
• RDTOH (ERDTOH and NERDTOH): additions, Part IV interactions, dividend refund mechanics, timing, and connected‑corporation issues.
• Capital Dividend Account (CDA): computation, elections, excessive elections, anti‑avoidance touchpoints, and stop‑loss considerations.
• Coordinating accounts in year‑end plans and with loss carrybacks; scheduling and common elections.
• Mini‑case style applications to reinforce multi‑account planning.

Learning Objectives:

Upon completing this course, you should be able to: 

• Describe the purpose and key attributes of major corporate tax accounts (GRIP, LRIP, ERDTOH, NERDTOH, and CDA).
• Calculate or validate balances and movements for these accounts and determine related dividend designations and refunds.
• Develop an annual tax plan that coordinates multiple accounts, including the impact of loss carrybacks.
• Identify common tips, traps, and interactions where a change in one account affects others.

Who Will Benefit: 

• Professionals involved in tax planning for CCPCs and your shareholders.
• Practitioners who prepare or review returns and need to coordinate multiple corporate tax accounts.