RE:Dividendsretired234 wrote:
Can anyone explain to me why Timbercreek dividends are taxed as interest income and therefore higher taxation rate as compared to most dividends that are eligible for the dividend tax calculation method for taxation ?
Thank you
GLTA
The diviidends elligible for the dividend tax credit have already been taxed at the coporate level, hence the existence of the tax "credit". Mortgage investment corporations are not taxed and essentially all profits flow through to shareholders who bear the full tax burden.. This is advantageous in a registered account since tax is avoided at both the coporate and individual level.
And of course they are "interest income".