Column A1 has been designed to indicate dividends from a foreign source. This information is used to determine the total Canadian and foreign taxable dividends received and deductible dividends received in order to update them to Schedule 7, Aggregate Investment Income and Income Eligible for the Small Business Deduction (Jump Code: 7). These amounts will be used to determine the Canadian or foreign investment income.
Schedule 3 also includes a column for non-taxable dividends received (for example, those from a capital dividend account). The total of all the non-taxable dividends is deducted in Schedule 1, Net Income (Loss) for Income Tax Purposes (Jump Code: 1).
Bar Codes
To submit bar codes that are compliant with government requirements, enter, in column 200 (Name of payer corporation), the corporation’s name on a single line. If required, abbreviate the name of the corporation.
Column F1 in Part 1
The information in column F1 will be used to calculate lines 200 and 210 of Schedule 53.
Note: If you do not complete the fields in columns F1 and G of Schedule 3, you will have to adjust lines 200 and 210 of Schedule 53.
Column G in Part 1
Information in this column will be used for purposes of calculating lines 200 and 210 of Schedule 53, General Rate Income Pool (GRIP) Calculation (Jump Code: 53).
Column P and line 455 in Part 3
Information in column P and on line 455 will be used for purposes of calculating line 150 of Schedule 55.
Sorting the names of payer corporations and the connected recipient corporations
When you click the 
button,
the corporation names will appear in alphabetic order both on screen and
when printing. When adding a corporation, you will have to repeat the
process to sort them.
The sort will be kept during roll forward of the file for the connected recipient corporations only.
Note that the button
will also be on the Form CO-17S.3, Dividends
Received, Taxable Dividends Paid, and Part IV Tax Calculation (Jump
Code: Q3). Any sort requested
from one of these forms will automatically be applied to the other.
The connected corporation’s taxation year end does not correspond to the filing corporation’s taxation year end
If the filing corporation receives dividends and its taxation year differs from that of the connected payer corporation, it could have received dividends in more than one taxation year of the payer corporation. Where applicable, use a separate line to provide information related to each taxation year of the payer corporation.
If the filing corporation pays dividends and its taxation year differs from that of the connected recipient corporation, it could have paid dividends in more than one taxation year of the recipient corporation. Where applicable, use a separate line to provide information related to each taxation year of the recipient corporation.
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Example: Corporation A pays $10,000 in dividends to Corporation B on April 1, 2019, and $25,000 on November 1, 2019. The taxation year of Corporation A is from January 1, 2019, to December 31, 2019. The taxation year of Corporation B is from July 1, 2018, to June 30, 2019. In the 2019 tax return, Corporation A must use a separate line to provide information related to each taxation year of the recipient corporation in Part 3, because the taxation years of Corporation A and Corporation B straddle. Here is the information that must be contained in Part 3 of Schedule 3:
For its 2019 return, Corporation B must only indicate an amount of $10,000 as dividends received from Corporation A in Part 1, because the amount of $25,000 will have to be declared in the 2020 return. Here is the information that must be contained in Part 1 of Schedule 3.
In the 2020 return of Corporation B, Part 1 of Schedule 3 should contain the following information:
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See also