Tax Implications

Return Paid OnTax TreatmentOptions
Loan and Mortgage InterestTax free unless the interest paid was claimed as a tax deduction.Can contribute the shares to a RRSP Share account and receive a contribution receipt.
RRSP InterestNo tax is payable, as the Shares will be paid to the RRSP plan and held as Shares in that plan. No tax receipt will be issued and your contribution room will not be affected.Additional Shares can be transferred to this account for which a contribution receipt will be issued, assuming there is contribution room available.
RRIF InterestNo tax is payable as the Shares will be paid to the RRIF and held as Shares in that plan. Minimum annual payments will be made from this plan and transferred as Shares to a non-registered Share account. Any member under 71 years of age, can transfer these Shares to a RRSP Share account.
Savings/Term Deposit InterestShares earned will be paid to a Bonus Share account and treated as interest income for the year in which they are received. A tax slip (T5) will be issued in the following year.Members can contribute the Shares to a Share RRSP account as a deposit and receive an RRSP contribution receipt, assuming there is contribution room available.

"DUCA’s employees are always friendly, easy to talk to, and Bonus Shares are a great incentive!"

- Linda Trebelco