Bill C-28, A Second Act to Implement Certain Provisions of the Budget Tabled in Parliament on May 2, 2006, creates a new tax regime for "eligible dividends." One result is that the top federal personal income tax rate on eligible dividends is reduced from 19.58% in 2005 to 14.55% in 2006.
Bill C-28 revises draft legislation released on June 29, 2006. These changes are outlined on page two of the PDF below. The legislation implements a 2006 federal budget proposal that, in turn, reflects an announcement made by the previous government on November 23, 2005. Bill C-28 received first reading in the Senate on December 11, 2006. However, because Parliament has adjourned for Christmas break, the bill will not become law before 2007.
For help determining what the new rules mean for you or your company, please contact any of the individuals listed within the PDF below.
Publications Search Page
