Dividends and capital gains on your Bell Aliant shares
Bell Aliant common shareowners may be subject to tax on dividends, which are generally taxed more favorably than other types of income. Unless otherwise stated, dividends paid by Bell Aliant to Canadian residents are eligible dividends as defined by subsection 89(1) of the Canadian Income Tax Act (Tax Act) and analogous sections of provincial tax legislation. Under this legislation individuals resident in Canada may be entitled to enhanced dividend tax credits that reduce the income tax otherwise payable.
Bell Aliant common shareowners are also required to pay tax on any capital gains they realize when they sell their shares or are deemed to have sold them. Our section dealing with Archived Information contains information about how you should calculate the cost of your shares.
Taxation rates vary by jurisdiction and individual circumstances. You should consult your own tax advisor if you need more information.
Bell Aliant Inc. Common Shares will be qualified investments under the Tax Act for trusts governed by registered ("RRSP") retirement savings plans ("RSP"), registered retirement income funds (RRIF"), deferred profit sharing plans (DPSP"), registered education savings plans, registered disability savings plans and tax-free savings accounts ("TFSA").
Shares held within a TFSA:
If Bell Aliant shares are held within a TFSA the dividends received from Bell Aliant will not be taxable to the individual Canadian resident shareholder. Funds withdrawn from a TFSA will not be taxable.
Shares held within an RRSP, RRIF, or DPSP:
If Bell Aliant shares are held within an RRSP, RRIF or DPSP, the dividends received from Bell Aliant will not be taxable to the individual Canadian resident shareholder, until funds are withdrawn from the RRSP, RRIF or DPSP.
Individual Canadian resident shareholders, who hold their shares outside of an RRSP, RRIF, DPSP or TFSA and who have received dividends during a particular calendar year, will receive a T5 slip by the last day of February of the following year, which is the filing deadline legislated under the Income Tax Act (Canada). Shareholders who hold their shares through a broker will receive the T5 slip from their broker. Registered shareholders will receive the T5 slip from our transfer agent CIBC Mellon Trust Company. Shareholders who are resident in the province of Quebec on December 31 of the particular calendar year will also receive a Relevé 3 slip. Unless otherwise notified, all of the dividends will be designated as eligible dividends.