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 Eligible dividends |
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Paying tax on dividends and capital gains on your BCE shares |
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Tax info for foreign investors |
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Why do we need your SIN or TIN |
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Crystallization / valuation day prices |
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Look up for historical share prices |
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Eligible dividends |
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Since January 1, 2006 and unless stated otherwise, dividends paid by BCE and Bell Canada to Canadian residents are eligible dividends as per the Canadian Income Tax Act. Since March 24, 2006 and unless stated otherwise, dividends paid by BCE and Bell Canada to Quebec residents are eligible dividends as per the proposed changes announced during the March 23, 2006 provincial Budget speech. |
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Dividends and capital gains on your BCE shares |
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BCE common shareowners are required to pay tax on dividends as well as any capital gains they realize when they sell their shares or are deemed to have sold them. If you held BCE’s shares on May 1, 2000, you should read our section dealing with the tax implications of Nortel distribution. It contains important information about how you should calculate the cost of your shares.
You may also be subject to tax on dividends, which are generally taxed more favorably than other types of income. Taxation rates vary by jurisdiction and individual circumstances. You should consult your own tax advisor if you need more information. |
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Tax info for foreign investors |
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Dividends on BCE shares paid or credited to non-residents of Canada are subject to a 25% withholding tax unless reduced by treaty. Under current tax treaties, U.S. and U.K. residents are subject to a 15% withholding tax.
For additional information, please consult your tax advisor.
US Investors
Since January 1, 2001, BCE has been required to solicit taxpayer identification numbers (TIN) and IRS Form W-9 certifications of residency from certain U.S. investors. Where these have not been received, BCE may be required to deduct the Internal Revenue Service’s specified backup withholding tax. The backup withholding rate on dividends is currently 28%. Shareholders who did not provide their TIN and W-9 certification of residency and had the backup withholding tax applied on their dividends can obtain a refund or credit against their U.S. federal income tax through the filing of their income tax return the following year. For additional information, please contact your tax advisor.
Under the Jobs and Growth Tax Reconciliation Act of 2003, dividends paid to US individuals by most US public companies and qualifying foreign corporations, including public Canadian companies such as BCE whose shares are readily tradable on a US stock exchange (e.g., the New York Stock Exchange), will be subject to US federal income tax at a maximum rate of 15 percent (or 5 percent for those in the lowest tax brackets), so long as certain conditions are met. For additional information, please contact your tax advisor. |
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Why we need your social insurance number (SIN) |
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An issuer is required by the Canada Customs and Revenue Agency to ask for your social insurance number (SIN) as you will receive income in the form of dividends from your shares. If you do not give your social insurance number when requested, you are liable for a penalty of $100 for each failure. If you do not have a social insurance number, please contact your local Canada Employment Centre. |
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Why we need your taxpayer identification number (TIN) |
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Since January 1, 2001, BCE has been required to solicit taxpayer identification numbers (TIN) and W9 declarations of residency from certain U.S. investors. Where these have not been received, BCE may be required to deduct the Internal Revenue Service’s specified backup withholding tax at a rate of 28% on all dividends. |
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Historical Information on Valuation Day Prices |
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Valuation day price – December 22, 1971
Prior to any stock split, the valuation day price for December 22, 1971 was established at $46.88. This amount was reduced to $15.63 following the 3:1 stock split of April 1979 and to $7.81 following the 2:1 stock split of May 1997. Following the May, 2000 distribution of Nortel Networks common shares, the valuation day price is no longer used in the calculation of the adjusted cost base (ACB) of BCE common shares.
If your average purchase price for all shares purchased prior to December 31, 1971 was below the valuation price of $46.88, the ACB of your BCE common shares immediately after the distribution of Nortel Networks common shares was $2.40 ($7.81 x 30.79%) while the ACB of your Nortel Networks common shares received pursuant to this distribution, and taking into account the May 5, 2000 Nortel Networks 2:1 stock split, was $2.70 ($7.81 X 69.21% / 2).
If your average purchase price, for all shares purchased prior to December 23, 1971, was above the valuation day price ($46.88), please consult your tax advisor.
Valuation day price – February 22, 1994
Shareholders who took advantage of the special tax election for BCE common shares owned on February 22, 1994, and claimed the $100,000 capital gains exemptions (before its elimination), were deemed not have held such shares prior to 1972 for purposes of calculating ACB after February 22, 1994. Thus, valuation day price ceased to be relevant after this date for shareholders who made such an election. |
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