Withholding Tax on Dividends via CDR in RRSP

Question

Recognizing that you guys aren't tax advisers, I was wondering if you know the answer to this because I haven't seen a good one anywhere. You reference which of your US Foundational Stocks have CDRs available I know there are pros and cons to going that route. One thing that isn't obvious though, is what happens with withholding tax on dividends. As I understand, if you hold the stock directly in your RRSP, based on its recognitions as a registered account in the tax treaty, you get the full dividend through your brokerage. But for a CDR, do they distinguish between whether it is in an RRSP or not, or is it withheld before that stage, thus subjecting you to the withholding tax (and you'd then have to file the paperwork to get it back)? Thanks.

Dan Kent · Answer

Very good question. It is one that I assumed the answer to, I figured they wouldn’t be charged withholding tax inside of an rrsp. But now I am having a hard time finding confirmation of it. So I have reached out to our contact about it and he will give me a straightforward answer. I’ll drop it here tomorrow.