# Is Molson Coors Eligible for the Canadian Dividend Tax Credit?



## swottawa (Sep 12, 2012)

I'm looking at buying some Molson Coors shares. However, they are very thinly traded on the TSX - the only real option is to buy in the US market. I'm trying to find out if they qualify for the dividend tax credit. I own some Thomson Reuters - bought on the Cdn market, they pay dividends in US dollars, and this stock qualifies. Where's the best place to find out for sure what the policy is. Molson's is or at least was a Canadian company. The company shareholder services will not provide any comment on matters of tax. Suggestions?


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## Young&Ambitious (Aug 11, 2010)

It's based on where the company is located (head office). So Molson's head office is in Colorado so yes you will get a foreign dividend tax credit if you hold this stock in a non-registered account. Or, if you hold this stock inside your RRSP the withholding tax normally withheld would not withheld be because of a Canada/USA treaty.


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## Toronto.gal (Jan 8, 2010)

swottawa said:


> I'm trying to find out if they qualify for the dividend tax credit.


Just to clarify with respect to non-registered accounts:

- U.S. dividends do not qualify for the Canadian dividend tax credit; 
- The 15% withholding tax, does qualify for a foreign tax credit on your Income Tax Return as Y&A mentioned.


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## Square Root (Jan 30, 2010)

Check their IR page on their website to ascertain the dividend status. This is important so you shouldn't rely on anonymous advice.


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## humble_pie (Jun 7, 2009)

square root is right, check their website investors' section.

i believe they are required to provide accurate information on the taxation consequences of their dividend, with implications for both US & canadian shareholders. What's more, i believe they will, if you ask them !

you mention "shareholder services" by which i assume you mean the transfer agent. One would never expect transfer agents to comment. Where you have to go, as root suggests, is directly to the horse's mouth. To the company's own IR representatives.


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## swottawa (Sep 12, 2012)

It was their IR contact (Meg Beck) I emailed. Her response was they do not address any subjects regarding taxation. Neither the US nor Canadian website addresses this question. 

I am going to try both Rev Canada, and my discount broker to see if they will provide any info. Should I get an answer, I'll post it for anyone who may be interested. 

Thanks for the responses so far.


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## Square Root (Jan 30, 2010)

Did their IR page not have the info you needed? If not I am surprised. EDIT. OK so you got me thinking. Checked a big bank web site and it was very easy to find the tax status of dividends. So then I went to the Molson Coors site. No wonder you are confused. Spent a few minutes and all I could figure out is that they have a very complicated share structure with several different classes of shares that vote differently and are exchangeable into other classes. IR site is awful. Would look for another co to invest in if I were you. There may well be some issues around the tax status of their divs. Maybe that is why they wouldn't tell you?


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## humble_pie (Jun 7, 2009)

root, it doesn't.

but mademoiselle Beck is shareholder services. Please see below. It's so unfortunate she was not responsible enough to forward the OP's query on to the right party.

where the OP wants to go is Investor Relations. Again, see below.

i've never held this stock, know zip about it other than that there was a merger w Coors some years ago.

at time of this merger there was probably a lengthy memorandum of understanding that would have been sent to shareholders & then filed on sedar, probably on edgar as well. These memos normally treat how dividends in complex reorgs are to be taxed, both for canadian shareholders & for US shareholders.

if molson at lower levels fails to help, OP could appeal to the executive in charge of public financial information. Although frankly i'm thinking why bother, since dividend is very low.

this big nob is normally the CFO. Most IRs report to the CFO. What OP wants to find is the binding document that treats how post-merger dividends are to be paid.

meanwhile, ottomh, i'd say this looks like a US dividend now.

_*Shareholder Relations*:

For general shareholder and/or proxy-related questions, please contact: 
Meg Beck, Director of Shareholder Services 
Tel: 303-927-2312 Fax: 303-927-2437 
Email: [email protected]

*Investor Relations*:

Securities analysts, investment professionals and shareholders with business-related inquiries regarding Molson Coors Brewing Company, please email us at [email protected] or contact Julie Frye at 303-927-2424._


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## humble_pie (Jun 7, 2009)

ps Root is right as usual. Avoid this stock each:


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## Toronto.gal (Jan 8, 2010)

I previously owned the stock [TAP - NYSE], but have not followed it too much since I sold back in late 2010. 

The dividend + tax were considered foreign [US], hence no dividend tax credit and had withholding taxes to pay. What I meant by US dividend in my initial post, was a paid dividend by a non-Canadian company, however, eligible Canadian companies trading in the US and paying dividend in USD, do qualify for the Canadian dividend tax credit.

I thought of buying the stock last April at $40 [my original purchase price in early 2010], but decided against it.

Molson Coors acquired StarBev earlier this year for $3.54 billion and not surprisingly, the stock has been declining ever since due to the acquisition as apparently, there are to be no share buybacks for a couple of years as a result of this debt/purchase.

If you want a Canadian stock that will give you the dividend tax credit and $0 withholding taxes, there are plenty to choose from at the moment that are better values.


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