GRIP

Also written as general rate income pool.

Definition

General Rate Income Pool. Tracks income taxed at the general corporate rate in a CCPC. Eligible dividends can only be paid out of GRIP.

Long reference

General Rate Income Pool (GRIP)

Citations, procedures, and worked examples for grip.

Related terms

Eligible dividend

A dividend paid from income taxed at the general corporate rate. Carries a higher gross-up and dividend tax credit than non-eligible dividends.

LRIP

Low Rate Income Pool. Tracks income taxed at the low rate in a non-CCPC. Must be paid out first as a non-eligible dividend.