Dividend should be entered twice on Schedule 4?

I had a client come back with a reassessment that I don't understand. They have 1 T5 from there company it is entered on the T1, schedule 4, as well as in the T5 form of course which shows up on line 120 (taxable amount of eligible dividends) I called cra, they are claiming that it also needs to go on schedule 4 - taxable amount of  dividends other then eligible dividends, so it shows up on line 180. So this therefore takes the $50,000. dividend, and doubles it to $100,000. Which for my client goes from a refund, to owing $5,000.00. This does not make sense to me, cra rep could not explain it. Can someone help me?

Answer

Hello

If this dividend is from their personal CCPC, it will go to T5 form in Profile, but ensure you have declared it as Non Eligible dividends (BOX 10 and Box 11) and do not put this in to BOX 24 and BOX 25.

This will then take the dividends from CCPC to line 180 and then to line 120 and then to T1 for only once.

Dividends received from large corporations are generally eligible (there is more with Tax credits and other ROTDH things that I cannot explain here)

Hope this helps

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