The difference between C & S Corporations for dividend payments and sales

The difference between C & S Corporations for dividend payments and gross proceeds payments as far as I can make it out to be:

For dividend payments it does not matter if it is a “C” Corporation or a “S” Corporation as they are treated the same for withholding and reporting – they are exempted from withholding and reporting.

For gross proceeds (sales) the “C” Corporation is exempted from withholding and reporting, however, the “S” corporations is subject to withholding (28%) and reporting on sales beginning in 2012.

Author: Warren Orlans

Welcome to inTAXicating. inTAXicating has been published since 2008 to provide clarity around Canadian taxation issues, primarily related to the Canada Revenue Agency. As the primary author, Warren Orlans, has over 20-year's experience in the taxation industry, 11 of them working for the Canada Revenue Agency (CRA), and 7-years working in the private sector Managing the tax departments for large financial institutions. If you have a collections, compliance or audit issue with the CRA, inTAXicating is the place you need to contact. inTAXicating works in strategic partnership with amazing accountants, tax lawyers, insolvency practitioners, mortgage brokers, debt counselling experts and much more. If you have a tax question, email it to or to

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