Capital Gains Tax

The capital gains is a bit tricky and you need to be careful with it as there are penalties involved for not doing it correctly. The capital dividends are reported on Schedule 03 and are deducted from the dividends reported on line 450 on Schedule 03. But you need to make sure that that your capital dividend amount is not more than the amount reported on Schedule 89. You must confirm the balance with CRA as well if in doubt.