A corporate tax account which allows the company to pay dividends out of investors' contributions, rather than from earnings. By paying dividends through this account, the corporation can avoid paying taxes on the distributions.
Related information about capital dividend account (CDA):
- Capital Dividend Account (CDA) Definition | Investopedia
A special corporate tax account which gives shareholders designated capital dividends, tax-free. This account is not recorded in the corporation's taxable ...
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Definition of capital dividend account (CDA): A corporate tax account which allows the company to pay dividends out of investors' contributions, rather than from ...
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... non-taxable surplus portion of the capital gain will be credited to the capital dividend account (CDA) of the (private) corporation (1) and can then be distributed, ...
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capital dividend account (CDA) meaning and definition in tax, fundamental analysis, A corporate tax account which allows the company to pay dividends out of ...
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The capital dividend account (“CDA”) is a notional tax account created as a means of tracking these tax-free amounts for income tax purposes and passing these ...
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Jun 30, 2007 ... The Capital Dividend Account (CDA) is a special notional tax account which a private corporation (CCPC) can use to give shareholders ...
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Using the capital dividend account (CDA) can help by permitting the company to distribute such income to its shareholders as tax-free dividends. Calculating the ...
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Apr 30, 2012 ... Several mechanisms exist to reduce tax on capital gains. The capital dividend account (CDA) is particularly efficient.