I-3 - Taxation Act

Section 584 Disposition versions

2006-03-01

584. A taxpayer resident in Canada who in a taxation year has received a dividend on a share of the capital stock of a corporation that was at any time a controlled foreign affiliate of the taxpayer, may deduct in computing his income for the year, in respect of such portion of the dividend as is prescribed under section 746 to have been paid out of the taxable surplus of the affiliate, within the meaning of section 747, the lesser of the amount by which that portion of the dividend exceeds the amount deductible in respect thereof under paragraph b of section 746 and the amount by which the amounts required by section 587 to be added exceed the amounts required by the same section to be deducted in computing the adjusted cost base of the share before the dividend was received.

1975, c. 22, s. 158; 1997, c. 3, s. 71.