Suspended Dividend Calculator
Determine whether a dividend between affiliated or connected corporations is a suspended dividend under the proposed rules, and how much refund is withheld, 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.
Whether the Refund Is Suspended
This is one of the built-in calculations in CodaraFlow. Enter the dividend between the payer and recipient corporations and the surrounding facts, and it determines whether the payer’s dividend refund is suspended under the proposed rules.
- Suspended or NotWhether the dividend is a suspended dividend under the proposed rules, for the eligible and non-eligible components.
- The Refund WithheldThe payer’s dividend refund held back until the suspension is released.
- What Releases ItThe matching taxable dividend that releases the suspended refund.
- Whole-Dividend EffectThe rule can suspend the entire dividend even where only part of it would have produced a refund.
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 determination, 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 release-condition, GRIP and proposed-rule notes appear only when the facts call for them.
The determination and the refund at stake are laid out for you.
Finish it in Word, on your firm’s letterhead. No proprietary format.
How the Determination Works
The determination follows the proposed suspended-dividend rules and the dividend refund provisions they modify. The wording is firm-editable; the sections are set by the legislation.
Under the proposed rules, a dividend paid within an affiliated or connected corporate group may suspend the payer’s dividend refund until the statutory release conditions are met.
The dividend refund the corporation would otherwise receive under subsection 129(1).
Whether the payer and recipient are affiliated or connected determines whether the rule applies.
The suspension lifts on matching taxable dividends of the same character paid outside the group, provided the statutory release conditions continue to be satisfied, including the absence of a loss restriction event where applicable.
These measures are proposed and apply to taxation years beginning on or after November 4, 2025. Confirm the determination against the enacted legislation before relying on it. The rule can suspend the entire dividend even where only part of it would have produced a refund.
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 determination and the notes that apply, not just a figure you copy into a client letter.
Are these rules in force?
At the time of writing, these are proposed measures intended to apply to taxation years beginning on or after November 4, 2025. Confirm the legislation has been enacted before relying on the result.
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.