This schedule is for corporations other than CCPCs or DICs. When the corporation has a LRIP balance, it cannot pay an eligible dividend until such time it pays a taxable dividend, entered on lines 240 or 540, to bring the LRIP to zero.
A CCPC that elects not to be a CCPC for dividends taxation purposes must answer “yes” to the question to that effect under line 266 of the Corporate Identification and Other Information (Jump Code: ID) form to allow the corporation to make this election for calculation purposes. Form T2002, Election, or Revocation of an Election, Not to Be a Canadian-Controlled Corporation must also be sent to the CRA. This form is available on the CRA Web site.
A question has been added at the top of this schedule to allow more flexibility regarding its transmission, since not all corporations pay or are expecting to pay eligible dividends.
The section “Eligibility for the various additions” helps you when entering data in the different applicable parts. Parts 4, 5 and 6 will be dynamic, thus displaying of these parts will be conditional to the existence of either one of the situations mentioned in the eligibility section.
In Part 2, you must create a line on which you must enter all pertinent information each time an eligible dividend is paid or an adjustment is made. Remember to indicate the date of this event on line 200. Lines 210, 220, 230, 240 and 250 are cumulative.
Parts 5 and 6 are multiple parts, thus enabling you to create a Part 5 for each of the amalgamated corporations and a Part 6 for each of the wound-up corporations. Remember to indicate the adjustment date in each of the copies of Parts 4, 5 and 6 in order for the amounts in Part 2 to be correctly carried over.
Multi copy form
Schedule 54 is multiple copy forms in which each copy (except for the first copy) of the schedule contains previous years data; this group of copies allows you to save the historical data for the low rate income pool (LRIP) calculation for taxation years ending after December 31, 2005.
When a return is rolled forward, a new copy of Schedule 54 will be created automatically for the immediately prior tax year and the data from that year will be carried forward to this new copy. The first copy of Schedule 54 multiple copy form represents the current taxation year and its contents are determined from the data in the current return.
For more details, please refer to the topic “History from Schedules 53 and 54.”