US DRIP- Tax implications Canadian resident

[expos]

I reside in Canada with no ties to the US. I'm a non-resident alien accoring to the IRS.

I enrolled in several US optional cash purchase and dividend reinvestment plans for US stocks through transfer agents such as Equiserve, Mellon Investor etc.

I filled out W8-BEN forms and submitted them to the various transfer agents, so IRS is taxing dividends at 15% which is the tax treaty rate.

I'm not receiving any kind of Canada Revenue Agency tax slips for the foreign US dividends. I filled my Canadian tax return out yesterday. I converted the US dividend income into Canadian dollars and reported it on Schedule 4 - Income from foreign sources. I also filled out a federal and provincial foreign tax credit forms to get back the US tax withheld by IRS.

I'm under the assumption that I don't need to fill out an IRS tax return as I can't get any refund from them unless transfer agent withholds more tax than the 15% tax treaty rate. If this is incorrect please let me know.

Please confirm one other thing. When I eventually sell the stock(s) the capital gain or loss will only need to be reported to the Canada Revenue Agency. I have an Excel spreadsheet that is keeping track of my ACB translated into Canadian dollars monthly.

I want to do this legally and not get into trouble with either country's tax departments so please advise.

As an aside, if I was to report nothing would Revenue Canada catch up to me. The only paperwork I get is IRS Form 1042-S. I'm not going to chance getting caught, I'm just curious.

Thanks

[nelsona]

You are handling these correctly, in both Canada and US.

My guess is that the 15% Us tax takes care of the fed tax on those dividends, with what's left not quite covering all of the prov tax.

Unless your stocks have some real estate or natural resource component, you will have no tax or reporting liability in US, as the treaty makes the gains only taxable in Canada.

<i>nelsona non grata... and non pro</i>