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.
The measures are proposed, they apply to years beginning on or after November 4, 2025, and they can hold back a refund entirely where only part of the dividend would have released one. Getting that wrong means telling a client a refund is coming that never arrives. The determination is built in, so the answer comes from the file’s facts and comes quickly.
The rules are already applied to whatever is entered, so a question that would otherwise start with an hour in the legislation starts with the client’s facts.
Where the rule suspends the whole refund rather than the part that earned it, that shows before the dividend is paid, not when the money fails to arrive.
A dividend paid up through several corporations is determined in one pass, rather than as a separate analysis for each company in the chain.
The caveat that these measures are proposed travels into the letter in the firm’s wording, so the file records what was known when the advice was given.
The determination goes to the client as an advisory letter that carries the proposed-rule caveat.
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.
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.
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 to an affiliated private or subject corporation whose taxation year ends after the payer’s suspends the payer’s dividend refund. Staggered year ends within a group are what the measure is aimed at.
The refund is released once same-character taxable dividends totalling the suspended portion have been paid outside the group. The same dollars cannot release two suspensions, so in a tiered structure the requirements add.
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.
Every calculator produces a planning estimate for a qualified practitioner to review. Renshi CodaraFlow does not give tax advice.
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.
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.
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.
Yes. Every sentence and every note is firm-editable, and can be overridden on an individual letter.
No. The app never connects to AI. Deliverables are assembled from structured facts and your firm’s approved wording.