Alberta’s latest innovation: tax-free dividends – The Globe and Mail


 

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Dividends are good. Not paying taxes on them is better. Getting them outside an RRSP and still not paying any taxes on them? Best.

You might have thought that impossible. But a growing batch of Alberta energy companies think they’ve found a way to perform this feat for their shareholders. Over the past couple of years, they’ve replaced their traditional dividend-reinvestment plans, or DRIPs, with what they call stock dividend programs. With these SDPs, the companies say, dividends received in the form of shares don’t count as income under Canada’s Tax Act.

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Alberta’s latest innovation: tax-free dividends – The Globe and Mail.

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