Before going on to find that if a distribution made from a Delaware subsidiary’s surplus would be a dividend for ITA purposes if it was a dividend under the Delaware corporate law, the Directorate stated:
Generally … a dividend includes any distribution of property by a corporation to its shareholders, with the exception of a distribution that constitutes a return of paid-up capital in respect of a class of shares of the corporation (see documents # E 9415515, E 9428025 and E 9515666). In this regard, whether or not the corporation is resident in Canada is irrelevant … .