[JohnV]

CRA has classified diviends into Large Corporation Dividends and Small Corporation Dividends

FOR T5's
LCD will be reported in boxes 24, 25 and 26 (actual, grossed up @45%, dtc @18.9655%) and considered "eligible dividends"
SCD will be reported in boxes 11, 12 and 13 (actual, grossed up @25%, dtc @13.3333%) and considered "ineligible dividends"

FOR T3's
LCD will be reported in boxes 49, 50, and 51
SCD will be reported in boxes 23, 32, and 39


For 2006, ALL dividends will be considered "eligible" unless the payor advises they do NOT qualify


EDIT.
Snowplow asked for a reference for the last statement, but it seemed the board may have crashed and when it was restored, both his question and my reply were gone.

It appears first off, that companies must communicate what they elect in writing, but this can be done simply by allocating the appropriate amounts to the appropriate boxes on the t slips. They can also post a notice on their websites, or on a mailing. Now because most if not all public companies will be paying out mostly eligible dividends, public companies paying out ineligible dividends will be rare....hence my statement.

Private companies will be more problematic, but assuming all high tax income is bonussed out, all their dividends will be ineligible.

http://www.pwc.com/c...m_ndtr_1206.pdf