RDTOH Recovery Calculator
Work out the refundable tax a private corporation recovers by paying dividends, and the net tax cost of recovering that refund to the shareholder and the company, then turn it into a client-ready letter, not just a number on screen.
The calculation is only half the work. CodaraFlow finishes the explanation, the tables, and the client-ready letter.
The Refund, and What It Costs to Get It
This is one of the built-in calculations in CodaraFlow. Enter the corporation’s refundable-tax pools and the dividends paid, and it computes the refund recovered and the net cost across the corporation and the shareholder.
- The Dividend Refund RecoveredHow much refundable tax a given eligible or non-eligible dividend releases.
- Eligible and Non-Eligible PoolsEligible dividends recover ERDTOH. Non-eligible dividends recover NERDTOH first, then ERDTOH where permitted by the Act.
- The Net Cost of the RecoveryThe corporate refund set against the shareholder’s personal tax on the dividend, to the family as a whole.
- Cost Per Refund DollarThe net cost of recovering each dollar of refund.
- Closing Pool and GRIP BalancesThe eligible pool, non-eligible pool and general rate income pool carried forward.
From the Calculation to a Client-Ready Letter
The number is not the deliverable. In CodaraFlow the result drops straight into a letter section: the firm’s approved wording, the computation tables, and the explanatory notes that actually apply to this client, written in for you. Exported as an editable Word document on your letterhead.
The same reviewed explanation, not whatever the preparer types today.
The pool-spill, GRIP-limit and filing-deadline notes appear only when the figures call for them.
The refund and net-cost computation is laid out and footed automatically.
Finish it in Word, on your firm’s letterhead. No proprietary format.
How the Recovery Is Calculated
The calculation follows the refundable dividend tax mechanism for private corporations. The wording is firm-editable; the rules are fixed by the Act.
A private corporation recovers refundable tax when it pays a taxable dividend, provided its return is filed within three years of the year-end.
An eligible dividend draws on the eligible pool (ERDTOH); a non-eligible dividend draws on the non-eligible pool (NERDTOH) and then any remaining eligible pool.
An eligible dividend designation is generally limited by the corporation’s GRIP balance. An excessive designation may attract Part III.1 tax.
The figures cover dividends paid to an individual shareholder. Dividends paid to connected corporations, and the resulting Part IV tax consequences, are outside these figures. The refund requires the corporation’s return to be filed within three years of the year-end; unused pool balances carry forward indefinitely.
Calculations Firms Reach For Alongside It
Get a working demo account, run this calculation on a real file, and export the letter it produces.
Everything is computed from the figures you enter and assembled from your firm’s approved wording. The app never connects to AI.
Editable Word documents on your firm’s letterhead. Monthly pricing, no long-term contracts.
Questions About This Calculation
Is this a standalone calculator?
No. It’s one of the built-in calculations inside CodaraFlow. The result becomes a client-ready letter section, complete with the computation table and the notes that apply, not just a figure you copy into a client letter.
Does it file the return or claim the refund?
No. It estimates the refund and its net cost so you can plan the dividend. The refund itself is claimed on the corporate return.
Can we change the wording and which notes appear?
Yes. Every sentence and every note is firm-editable, and can be overridden on an individual letter.
Does any client data go to an AI?
No. The app never connects to AI. Deliverables are assembled from structured facts and your firm’s approved wording.