CO-502, Election in Respect of a Dividend Paid Out of a Capital Dividend Account

The form becomes applicable when all of the following conditions are met:

• a dividend amount for which this election is made is entered on line 20 of Part 3;
• it is indicated that the corporation is a private corporation (either a CCPC or another private corporation) in the “General information” section; and
• the corporation is resident in Canada according to the “Corporate residence” section of Form Identification, Corporate identification and other information (Jump Code: ID).

Any corporation that files this election after the due date is subject to a late-filing penalty. The due date for the election is the earlier of:

• the day the dividend becomes payable; and
• the first day on which any portion of the dividend was paid.

If the “Name of authorized officer” field of the “Election certification” section of Form T2054 (Jump Code: 2054) is subject to an override in Form T2054 (Jump Code: 2054), the “Area code Telephone” and “Extension” fields in Part 5 of Form CO-502 will be input fields. Otherwise, these fields will be completed automatically based on the information entered in the “Certification” section of Form Identification (Jump Code: ID).

Note that this form must be filed separately from any other return and it must be mailed to Revenu Québec at 3800, rue de Marly, Québec (Québec) G1X 4A5 on or before the election due date.