Nope, it was just that all the easy internet hits I found for my question gave answers based on the US situation (where I think there *is* a minimum holding time), so I figured I should underline the Canadian thing.
That makes sense.
Dividend tax rates are based on the corporate tax rate of the company paying the dividend. The idea is "tax integration" so that the same amount of tax is paid on its way from its source to the final individual who will spend the money, regardless whether it is earned as employment income or received as a dividend. The reduced tax for "eligible dividends" is to recognize that the company has paid a higher tax rate on its income before paying you the remaining dividend. For small businesses, which get the small business deduction, the corporate rate is less but then the tax on the dividend is higher (non-eligible).
Now, there are practical political issues as to whether large Canadian corporations are actually paying enough tax at the higher rate, but the principal of integration is a good one.
