Tax Advantages

Alaris' dividend payments are "eligible dividends" for Canadian tax purposes. Generally, when an individual investor receives a dividend from a taxable Canadian corporation, a "grossed-up" amount of that dividend must be included in the investor's income. The investor may then claim a credit of the grossed-up dividend. Depending upon the investor's province of residence and applicable income tax bracket, eligible dividends are generally taxed more favorably than non-eligible dividends. Specifically, the amount of the gross-up percentage and offsetting dividend tax credit are higher than for non-eligible dividends.