f1 Q @ 2 f2 W # Eligible dividends are paid from a corporation's active business income that's been taxed at the general corporate rate. Shareholders who receive these dividends are entitled to the enhanced dividend tax credit, which is [(6/11) x (38% gross up rate)] = 21% at the federal level. Non-eligible dividends are paid from the corporation's active business income that's been taxed at the small business rate, or from passive investment income. Exceptions include eligible portfolio dividends, which may be paid as eligible dividends. Shareholders who receive these dividends are entitled to the ordinary dividend tax credit, which is [(9/13) x ( 15% gross up rate)] = 10% at the federal level. Here's the problem: a corporation may receive a refund of taxes paid on investment income-reflected in the corporation's RDTOH account- regardless of whether dividends paid are eligible or non-eligible. f3 3 3 S E f4 $ 4 63 Dividend Refund - Problem f5 R do % EC 5 f6 a A T ASUS X 6 f7 n