Section 187.1 — Income Tax Act: Definition of excepted dividend

In this Part, excepted dividend means a dividend received by a corporation on a share of the capital stock of a foreign affiliate of the corporation, other than a dividend received by a specified financial institution on a share acquired in the ordinary course of the business carried on by the institution; received by a corporation from another corporation (other than a corporation described in any of paragraphs (a) to (f) of the definition financial intermediary corporation in subsection 191(1)) in which it has or would have, if the other corporation were a taxable Canadian corporation, a substantial interest (as determined under section 191) at the time the dividend was paid; received by a corporation that was, at the time the dividend was received, a private corporation or a financial intermediary corporation (within the meaning assigned by subsection 191(1)); received by a corporation on a short-term preferred share of the capital stock of a taxable Canadian corporation other than a dividend described in paragraph (b) or (c) of the definition excluded dividend in subsection 191(1); or received by a corporation on a share (other than a taxable RFI share or a share that would be a taxable preferred share if the definition taxable preferred share in subsection 248(1) were read without reference to paragraph (a) of that definition) of the capital stock of a mutual fund corporation.