Taxation
Timbercreek Financial may pay taxable dividends and/or capital gains dividends to Holders of TF Shares. It is expected that the majority of dividends paid by TF will be taxable dividends. Taxable dividends, other than capital gains dividends, received by a Holder of TF Shares (whether paid in cash or reinvested in TF Shares) must be included in the Holder’s income as interest payable on a bond issued by Timbercreek Financial.
TF taxable dividends paid are therefore considered interest (Box 13 of the T5 slip) for Canadian tax purposes and are not considered an eligible dividend/non-eligible dividend. TF capital gains dividends paid are considered capital gains (Box 18 of the T5 slip) for Canadian tax purposes.