What are the tax consequences to a corporation and its shareholder when that corporation declares a dividend

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What are the tax consequences to a corporation and its shareholder when that corporation declares a dividend but, instead of paying cash, distributes to the shareholder property that has a value greater than the cost amount to the corporation?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Canadian Income Taxation Planning And Decision Making

ISBN: 9781259094330

17th Edition 2014-2015 Version

Authors: Joan Kitunen, William Buckwold

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