T5 Guide – Return of Investment Income 

From: Canada Revenue Agency

T4015(E) Rev. 19

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Table of contents

Is this guide for you?

If you make certain investment income payments to a resident of Canada, or if you receive certain investment income payments as a nominee or agent for a person resident in Canada, you have to prepare a T5 information return. This guide explains how to complete the T5 information return.

Chapter 4 – T5 slip describes the payments for which a T5 information return is required.

Note

In certain situations, the Income Tax Act treats payments in a specific way. For example, you have to report some interest payments as dividends and some dividend payments as interest. This guide explains these and other rules.

If you make certain investment income payments to a non-resident of Canada, see Chapter 7 – Payments to non-residents of Canada.

In this guide, the term "filer" refers to the person (that is, an individual or organization) that, under the Income Tax Act, must prepare and file a T5 information return. A filer is different from a service bureau or anyone else who may be filing the return for a filer.

Do not use the T5 information return to report debt obligations in bearer form. For more information on reporting debt obligations in bearer form, see Guide T4091, T5008 Guide – Return of Securities Transaction.

Are you acting as a trustee?

If you are acting as a trustee and you own and control property for another person, you have to file a T3 Trust Income Tax and Information Return. If the beneficial owner keeps ownership and control of the property, you must report any income earned on a T5 information return (as described under the first heading of Chapter 4).

If you are acting as a trustee and you are not sure if you should complete a T3 or a T5 information return, see Guide T4013, T3 Trust Guide. The information in that publication and in this guide will help you decide which return to complete. If you still have questions, visit the Canada Revenue Agency or call 1-800-959-5525.

Confidentiality of information

Under the Privacy Act, the personal information you provide on the T5 information return and related forms can be used only for the purposes authorized by law.

Income Tax Act references

Unless otherwise stated, all legislative references are to the Income Tax Act and the Income Tax Regulations.

What's new?

Internet file transfer availability

Internet filing is available from January 6, 2020.

Recipient identification number

Starting January 1, 2020, if the recipient is a business (sole proprietor, partnership, or corporation), you must enter the 15 character program account number in box 22. The program account number consists of three parts: the business number (BN), the program identifier and the reference number.

For more information, see Box 22 – Recipient identification number.

Gross up factor

Starting January 1, 2019, the gross-up factor applicable to non-eligible dividends changes to 15% and the corresponding dividend tax credit for non-eligible dividends changes to 9/13 of the taxable gross-up amount for the 2019 taxation year.

Chapter 1 – General information

You must file your T5 information returns over the internet if you file more than 50 information returns (slips) for a calendar year. If you file fewer than 50 information returns (slips) for a calendar year, we would prefer that you file over the Internet to help us process your T5 returns quickly and accurately. For more information, see Chapter 3 – Filing methods.

Use the current versions of the T5 slip and T5 Summary when you file your T5 information return.

Note

You cannot combine amounts when you provide T5 slips to the recipients. For example, when you submit three T5 slips to us for the same recipient, you have to issue three separate slips to the recipient. We accept consolidated T5 slips only if your corporation amalgamated with one or more corporations during the year. The new corporation can prepare a consolidated T5 information return for itself and the predecessor corporation(s).

Do not file a blank or nil T5 information return. You do not have to file a T5 return for a year during which you did not pay or credit any amounts.

This guide does not deal with every tax situation. For a list of publications that explain certain situations in more detail, see Appendix D – References.

Due date

You have to file a T5 information return by the last day of February following the calendar year to which the information return applies. If the last day of February is a Saturday, a Sunday, or a public holiday, your information return is due on the next business day. Note that several provinces and territories have their own unique holidays. Therefore, due dates may be affected depending on where you reside. For a list of public holidays, go to Public holidays.

You can send recipients an electronic copy of their T5 slips. The recipient must have consented in writing or by email to receive the slips electronically.

Send the recipients' copies of the T5 slips to their last known address or deliver them in person. You have to do this on or before the day you have to file the T5 information return. 

Important information: Electronic filing of information returns

All information returns should be filed electronically to avoid the delays that may occur in processing paper submissions. Filing of paper returns may result in penalties.

The CRA offers two methods for electronically fling your information returns:

  • Web Forms – with each submission, you can include up to 100 slips
  • Internet file transfer – You can submit files of up to 150 MB over the internet

Some of the benefits of electronically filing your returns are:

  • your return will be processed without delay
  • you will receive a confirmation number when you file
  • slips are available sooner for Auto-fill my return

For more information about Web Forms, Internet file transfer, and penalties, go to Filing Information Returns Electronically (T4/T5 and other types of returns).

Penalties

Late filing and failure to file the T5 information return

We consider your return to be filed on time if we receive it or if it is postmarked on or before the due date.

The minimum penalty for late filing the T5 information return is $100 and the maximum penalty is $7,500. For the complete penalty structure, go to Penalty for failure to file an information return by the due date.

Failure to file information returns over the Internet

If you file more than 50 information returns (slips) for a calendar year and you do not file the information returns by Internet file transfer or Web Forms, you are liable to a penalty as follows:

Failure to file information returns over the Internet
Number of information
returns (slips) by type
Penalty
 
51 - 250 $250
251 - 500 $500
501 - 2,500 $1,500
2,501 or more $2,500

Each slip is an information return, and the penalty we assess is based on the number of information returns filed in an incorrect way. The penalty is calculated according to the type of information return. For example, if you file 51 T5 slips and 51 T4 slips on paper, we will assess two penalties of $250, one for each type of information return.

Failure to provide information on a return

Anyone who prepares an information return has to make a reasonable effort to get the necessary information, including identification numbers, from the individuals, corporations, trusts, or partnerships that will receive the slips. If you do not do this, you may be liable to a $100 penalty for each failure to comply with this requirement.

Failure to provide an identification number

Individuals, trusts (See note under Box 22 – Recipient identification number), corporations, or partnerships have to give their social insurance number (SIN), trust account number or business number (BN) on request to anyone who has to prepare an information slip for them. A person or partnership that does not do so is liable to a $100 penalty for each failure to comply with this requirement. This penalty does not apply if the person or partnership had applied for, but had not yet received, a SIN, a BN, or program account number at the time the return was filed.

A person who does not have an identification number must apply for one within 15 days of the date of an information request. After receiving the identification number, the person has 15 days to provide it to the person who is preparing an information return.

Failure to provide a social insurance number (SIN) on an information return

Make sure the SIN and name you enter on the T5 slip for each recipient are correct.

If the individual does not give you his or her SIN, you have to be able to show that you made a reasonable effort to get it. For example, if you contact a recipient by mail to ask for his or her SIN, be sure to record the date of your request and keep a copy of any correspondence that relates to it. If you do not make a reasonable effort to get a SIN, you may be subject to a penalty of $100 for each failure. If you cannot get a SIN from the recipient, file your information return, without the SIN, no later than the last day of February following the calendar year to which the information return applies. If you do not, you may be subject to a penalty.

A person who does not have a SIN can apply for one at any Service Canada Centre.

For more information, see Information Circular IC82-2R, Social Insurance Number Legislation that Relates to the Preparation of Information Slips, or visit Service Canada.

Using the identification number

If you have to prepare an information return, or if you are an officer, employee, or agent of someone who does, you cannot knowingly use or communicate an identification number, or allow it to be communicated, without the written consent of the individual, taxpayer, or partnership, other than as required or authorized by law or for the purpose for which the number was provided.

If you use an identification number for unauthorized purposes, you may be guilty of an offence. If convicted, you are liable to a maximum fine of $5,000 or imprisonment of up to 12 months, or both.

Interest

If you fail to pay an amount, we can apply interest from the day your payment was due. The interest rate we use is the prescribed rate that is determined every three months. Interest is compounded daily. We also apply interest to unpaid penalties. For the prescribed interest rates, go to Prescribed interest rates.

Cancelling or waiving penalties or interest

The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA discretion to cancel or waive penalties or interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

The CRA’s discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made.

For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2019 must relate to a penalty for a tax year or fiscal period ending in 2009 or later.

For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2019 must relate to interest that accrued in 2009 or later.

To make a request, fill out form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest. For more information about relief from penalties or interest and how to submit your request, go to Taxpayer relief provisions.

Notice of assessment

We will issue a notice of assessment for the T5 information return only if we apply a penalty.

Chapter 2 – T5 information return

A T5 information return consists of T5 slips and the related T5 Summary.

T5 slip

Use this slip to report the various types of investment income that residents of Canada have to report on their income tax and benefit returns. Do not report on a T5 slip investment income paid to non-residents of Canada. For information about payments to non-residents, see Chapter 7 – Payments to non-residents of Canada.

The T5 slip has three individual slips printed on each T5 sheet. A fillable version is also available at Forms and publications.

For information on how to complete the T5 slip, see Completing the T5 slip. For a sample of the T5 slip, see T5 slips.

T5 Summary

Use this form to total all the amounts you report on the related T5 slips.

For information on how to complete the T5 Summary, see Completing the T5 Summary. For a sample of the form, see T5 Summary.

Chapter 3 – Filing methods

Internet filing is available from January 6, 2020. You must file information returns by Internet if you file more than 50 information returns (slips) for a calendar year.

If you use commercial or in-house developed software to manage your business, you can file up to 150 MB by Internet file transfer. For example, a service bureau can file multiple returns in one submission, provided the total submission does not exceed the 150 MB restriction.

Note

If your return is more than 150 MB, you can either compress your return or divide it so that each submission is no more than 150 MB.

Mandatory electronic filing

Failure to file information returns over the Internet

If you file more than 50 information returns (slips) for a calendar year and you do not file the information returns by Internet file transfer or Web Forms, you are liable to a penalty. For more information, see Penalties.

Filing by Web Forms

Our Web Forms application is free and secure. To use it, all you need is access to the Internet. With Web Forms you can fill out an information return easily, following the step-by-step instructions.

Web Forms lets you:

  • file up to 100 slips (original, additional, amended, or cancelled) from our website
  • calculate all of the totals for the summary
  • create an electronic information return containing slips and a summary, which can be saved and imported at a later date
  • print all your slips and your summary
  • validate data in real time

After you submit your information return, you will receive a confirmation number that will be your proof that we received it.

To use the Web Forms application, you must have a Web access code. If you do not have a Web access code, you can easily get one online or by calling us. For more information, see Web access code.

To start using this application or to get more information about Web Forms, go to Filing using Web Forms.

Filing by Internet file transfer

Internet file transfer allows you to transmit an original or amended return with a maximum file size of 150 MB. All you need is a Web browser to connect to the Internet, and your software will create, print, and save your electronic information return in XML format. For information about this filing method, contact your software publisher or go to Filing Information Returns Electronically (T4/T5 and other types of returns).

Web access code

To file your return over the Internet using the Internet file transfer or Web Forms service, you will need a business number (RP or RZ) and its associated Web access code (WAC), unless you are filing through My Business Account or Represent a Client. For more information about these services, see Filing without a Web access code. The CRA is no longer mailing WAC letters. If you have misplaced or do not have a WAC, go to Filing Information Returns Electronically (T4/T5 and other types of returns) to access our Web access code online service. If you cannot get your WAC online or would like to change it, call 1-800-959-5525.

Filing without a Web access code

To register as a business owner, go to My Business Account do the following:

  • Select “CRA Register” and create a CRA user ID and password. You can also select “Sign-In Partner Login / Register” and use the same sign-in information you use for other online services, such as online banking.
  • To register, you will need to provide all of the following information:
    • your social insurance number (SIN)
    • your date of birth
    • your postal code or ZIP code
    • an amount you entered on your income tax and benefit return (the line we ask for will vary; it could be from the current or the previous tax year)
    • your business number (BN)
  • You must enter a CRA security code to finalize the registration process. You can ask for the CRA security code by mail or email.
  • Return to My Business Account, to enter your CRA security code.

To register as a representative, including employees of a business, go to Represent a Client and do the following:

  • Select “Sign-In Partner Login / Register” and create a CRA user ID and password. You can also select “Continue to Sign-In Partner” and use the same sign-in information you use for other online services, such as online banking.
  • To register, you will need to provide the following information:
    • your access code from your notice of assessment
    • your postal code or ZIP code
  • Register as the business owner (using your BN) or as yourself and receive a representative identifier(RepID), or create a group of representatives and receive a group identifier (GroupID).
  • Get authorization to have online access to the tax-free saving account (TFSA) account by doing one of the following:
    • using the “Authorization request” service with Represent a Client.
    • giving your BN, RepID, or GroupID to businesses or your employer so they can authorize you using the “Authorize or manage representatives” service in My Business Account.

Note

If the business authorizes you online in My Business Account, you will have immediate online access to the business program accounts.

Once you are registered as the business owner, or registered and authorized as a representative, an employee, or a group of employees, you will be able to file or amend T5 slips without a Web access code.

Filing on paper

If you file 1 to 50 slips, we strongly encourage you to file over the Internet using Internet file transfer or Web Forms. However, you can still file up to 50 slips on paper.

If you choose to file your return on paper, mail it to:

T5 Program
Jonquière Tax Centre
PO Box 1300 LCD Jonquière
Jonquière QC  G7S 0L5

Filing using computer printed (customized) forms

For those who complete a large number of slips, we accept certain slips other than our own. The applicable information printed on the back of the recipient’s information slip must be provided.To ensure accuracy, follow the guidelines for the production of customized forms at Customized forms or see Information Circular IC97-2R Customized Forms.

Chapter 4 – T5 slip

When do you have to prepare a T5 slip?

If you make certain types of payments to a resident of Canada, or if you receive certain types of payments as a nominee or agent for a person resident in Canada, you have to prepare a T5 slip.

These payments include:

  • eligible dividends and dividends other than eligible dividends (including most deemed dividends)
  • interest from one or more of the following:
    • a fully registered bond or debenture
    • money loaned to or on deposit with, or property of any kind placed with, a corporation, association, organization, institution, partnership, or trust
    • an account with an investment dealer or broker
    • an insurance policy or annuity contract (when the interest is paid by an insurer)
    • an amount owing as compensation for expropriated property
  • certain amounts distributed from an eligible funeral arrangement (see Box 14 – Other income from Canadian sources)
  • amounts that have to be included in a policyholder's income under section 12.2 of the Act
  • royalties from the use of a work, an invention, or a right of production from natural resources
  • blended payments of income and capital made by a corporation, association, organization, institution, partnership, or trust. For more information, see Blended payments
  • interest that is deemed to accrue pursuant to subsection 20(14.2) of the Income Tax Act as a result of the assignment or transfer of linked notes, (see Box 30 - Equity linked notes interest)

For investment contracts acquired before 1990, you have to report accrued interest every three years, unless the recipient has elected to report annually. This calculation is based on the calendar year. For more information, see Contracts acquired after November 12, 1981, and before 1990.

For investment contracts acquired after 1989, you have to report accrued interest every year. Base this calculation on the date the investment contract was issued. We will consider an investment contract acquired before 1990 to be a new contract acquired after 1989 if certain material changes were made after 1989. For details, see Interpretation Bulletin IT-448, Dispositions – Changes in Terms of Securities, and its Special Release.

We explain special accrual rules for indexed debt obligations in Indexed debt obligations issued after October 16, 1991.

When do you not have to prepare a T5 slip?

You do not have to prepare a T5 slip to report:

  • amounts paid to one recipient when the total amount for the year is less than $50
  • the interest part of a blended payment made by an individual
  • interest one individual pays to another, such as interest paid on a private mortgage (this does not include investment dealers or brokers making payments for client program accounts)
  • interest paid on loans from banks, financial houses, or other institutions whose usual business includes lending money
  • capital dividends, as described in Income Tax Folio S3-F2-C1, Capital Dividends
  • amounts paid or credited to non-residents of Canada (see Chapter 7 – Payments to non-residents of Canada)
  • interest on an investment contract accrued or payable during the year to a corporation, partnership, unit trust, or any trust of which a corporation or partnership is a beneficiary
  • an amount distributed from an eligible funeral arrangement, if the amount is a return of contributions only
  • interest paid to farmers under the AgriStability and AgriInvest programs, Fund 2 (these amounts are reported on an AGR-1 slip)

Completing the T5 slip

Before completing the T5 slips, see Chapter 3 – Filing methods. We can process your return more efficiently if you follow these instructions.

Recipient's name and address

Enter the information in the white area provided.

If more than one recipient is entitled to the investment income (for example, interest credited to a joint account), you only need to complete one T5 slip. If there are two recipients, enter both names. For a corporation, enter the name of the corporation (see Box 23 – Recipient type).

Where there are multiple (two or more) account holders for the same account, the onus is on the account holders to ensure that each individual reports their fair share of the income. You have to prepare the T5 slip with the name of the individual(s) who represent the group of investors. The T5 slip should indicate the primary representative or the secondary representative, if known, as well as the primary representative's SIN in box 22. In addition, code 2 must be entered in box 23 (see Box 23 – Recipient type), which advises the CRA that the account is a joint account.

If the payment is made to an association, organization, or institution, enter that name. Do not enter the name of the secretary-treasurer or any other individual who has signing authority. If the payment is made to the registered holder of an investment (for example, broker or trustee of an RRSP), enter the name of the registered holder, not the name of the individual. If the payment is made to a trust, enter the name of the trust and not the name of the individual beneficiaries of this trust.

First line – Enter the individual's last name first, first name(s) and initials, or enter the name of the recipient corporation, association, organization, institution, or trust. For "Estate of" or "in Trust for," enter the usual last name, followed by the first name(s) and initials followed by "Estate of" or "in Trust for."

Second line – Enter the second recipient's last name, first name(s), and initials. If there is only one recipient, leave this line blank.

In all cases, enter the recipient's full mailing address as follows:

Third, fourth, and fifth lines – Enter the recipient's full address, including city, province or territory, and postal code. For the province or territory, use the two-letter abbreviations from the list Appendix C – Provincial and territorial codes. As some addresses are longer than others, we have provided extra space in this area. You can leave some lines blank if they are not required.

Payer's name and address

Complete this area on each T5 slip. Enter the payer's full name and address.

Year

Enter the four digits of the calendar year during which the recipient earned the investment income.

Boxes 10, 11, 12, 24, 25, and 26 – Dividends from Canadian corporations

Dividends include all payments in cash or kind (including stock dividends) and all amounts deemed to be dividends. For more information, see Deemed dividends. For more information on unclaimed dividends, see Chapter 10 – Unclaimed amounts: Dividends or interest.

Dividends from taxable Canadian corporations paid to an individual (other than a trust that is a registered charity) are eligible for a federal dividend tax credit.

If the dividends paid are dividends other than eligible dividends, read the following instructions for boxes 1011, and 12.

If the dividends paid are eligible dividends, read the instructions for boxes 2425, and 26. For more information about eligible dividends, see Guide T4012, T2 Corporation – Income Tax Guide.

Note

Dividends that pass through a corporation retain the character they had, as eligible dividends or dividends other than eligible dividends, when they were initially paid.

Box 10 – Actual amount of dividends other than eligible dividends

For dividends paid after 2005, enter the actual amount of dividends other than eligible dividends, or the amount we deem to be dividends other than eligible dividends, paid by a Canadian corporation.

For dividends paid before 2006, enter the actual amount of dividends, or the amount we deem to be dividends, paid by a Canadian corporation.

For recipients who are individuals resident in Canada (other than a trust that is a registered charity), the dividends must be paid by a taxable Canadian corporation.

Do not include:

Note

You do not need to submit a T5 slip if capital gains dividends are the only dividends.

Box 11 – Taxable amount of dividends other than eligible dividends

Complete box 11 only for individuals resident in Canada (other than a trust that is a registered charity). Enter in box 11 the total of the amount from box 10 plus the taxable gross-up amount. For dividends paid in 2019 or later, the taxable gross-up amount is 15% of the amount of dividends reported in box 10. For dividends paid in 2018 or before, see the gross-up factor in the table. Do not enter an amount in box 11 if the dividends entered in box 10 are paid to a corporation.

Box 12 – Dividend tax credit for dividends other than eligible dividends

Complete box 12 only for individuals resident in Canada (other than a trust that is a registered charity). 

For dividends paid in 2019 or later, the amount you enter in box 12 is 9/13 of the taxable gross-up amount, or 9.0301% of the amount you entered in box 11. For dividends paid in 2018 or before, see the dividend tax credit percentage in the table. Do not enter an amount in box 12 if the dividends entered in box 10 are paid to a corporation.

Box 13 – Interest from Canadian sources

Enter the following amounts, as long as you did not previously report them:

  • interest on a fully registered bond or debenture
  • interest on money loaned to or on deposit with, or interest on any kind of property placed with, a corporation, association, organization, institution, partnership, or trust
  • interest on an account with an investment dealer or broker
  • interest an insurer paid in connection with an insurance policy or annuity contract
  • interest on an amount owing as compensation for property that has been expropriated
  • the interest part of blended payments unless paid by an individual or if paid by a corporation, association, organization, institution, partnership, or trust (see Chapter 9 – Blended payments and deemed dividends)
  • dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a designated stock exchange
  • taxable dividends other than capital gains dividends that a mortgage investment corporation paid to any of its shareholders

Do not include:

  • interest from a source outside Canada (see Box 15 – Foreign income)
  • the interest part of a blended payment made by an individual
  • interest one individual pays to another, such as interest paid on a private mortgage (this does not include investment dealers or brokers making payments for client program accounts)
  • interest paid on loans from banks, financial institutions, or other institutions whose usual business includes lending money
  • the accrued income from an annuity described under former paragraph 56(1)(d.1), or accrued income of certain life insurance policies (see Box 19 – Accrued income: Annuities)

For more information on accrued interest on investment contracts, see Chapter 8 – Accrued interest. For information on unclaimed interest, see Chapter 10 - Unclaimed amounts: Dividends or interest.

Other information

The "Other information" area in the middle of the T5 slip has blank boxes for you to enter codes and amounts that relate to other income from Canadian sources, foreign income, foreign tax paid, royalties from Canadian sources, accrued income, and annuities. You can also use this area for any other entries that apply.

The boxes are not pre-numbered as in the top part of the slip. Enter the following codes (the numeric codes for the boxes) that apply to the recipient.

Note

If more than three codes apply to the same recipient, use an additional T5 slip.

Box 14 – Other income from Canadian sources

Identify a box in the "Other information" area as box 14. In the "Amount box," enter other income from Canadian sources. Other income includes:

  • taxable dividends and deemed dividends (see Deemed dividends) paid to an individual by a corporation resident in Canada that is not a taxable Canadian corporation
  • amounts reported by life insurers, to be included in a policyholder's income under paragraph 56(1)(j)
  • amounts distributed from an eligible funeral arrangement (EFA) after 1995 to a taxpayer as a return of funds

An EFA is an arrangement a qualifying person establishes and maintains solely to fund funeral or cemetery services for one or more individuals. The custodian then reports the amounts distributed from the arrangement after 1995 that are not payments for providing funeral or cemetery services and that do not reflect contributions previously made. The custodian can be the trustee of any trust governed by an EFA. If a trust is not involved, the custodian can be any person who receives a deposit under the EFA for providing funeral services. This person has to be licensed or authorized under the laws of a province or territory to provide funeral or cemetery services for individuals.

The EFA's custodian has to enter the code "14" in a generic box in the "Other information" area. The amount you have to report in the "Amount box" next to box 14 is the lesser of:

  • the amount distributed from the EFA to a taxpayer (other than as payment for providing funeral or cemetery services for the individual from whose account the amount was distributed)
  • the amount on line 7 of the following chart:
1.
Enter the individual's balance under the EFA before the refund (excluding the value of property in a cemetery care trust).
1
2.
Enter the total of all payments made from the EFA to provide funeral or cemetery services for the individual (other than cemetery services funded by property in a cemetery care trust).
2
 
3.
Line 1 plus line 2
3
 
4.

Enter the total of all relevant contributions Footnote 1 made to the individual's EFA before the amount was distributed (other than contributions that were in a cemetery care trust).

4
 
5.

Enter the total of all deemed distribution amounts transferred, credited or added to the individual's balance which are in excess of the portion added in computing the taxpayer's income. Footnote 2

5
6.
Line 4 minus line 5
6
7.
Line 3 minus line 6
7
Example

Mr. Gilbert contributed $8,000 to a prepaid funeral arrangement. The balance in the arrangement grew to $10,000 before Mr. Gilbert died. The total payments made from the arrangement for funeral services amounted to $9,500. The $500 balance was refunded to the estate. In this case, the custodian of the EFA would show $500 in box 14 of the T5 slip issued in the name of Mr. Gilbert's estate.

This amount is the lesser of:

  • $500 (the refund amount)
  • $2,000 ($500 + $9,500 – $8,000)

Box 15 – Foreign income

Identify a box in the "Other information" area as box 15. In the "Amount box", enter in Canadian currency the gross foreign income received from sources outside Canada. Do not reduce the amount by any foreign income tax that was withheld. Enter any amounts for foreign spin-off shares received from sources outside Canada. If you cannot report the amount in Canadian currency, see Box 27 – Foreign currency.

Box 16 – Foreign tax paid

Identify a box in the "Other information" area as box 16. In the "Amount box," enter in Canadian currency the foreign income tax, if any, which was withheld from the gross foreign income you reported in box 15. The recipient of the T5 slip will need to know this amount to calculate their federal, provincial, or territorial foreign tax credits. If you cannot report the amount in Canadian currency, see Box 27 – Foreign currency.

Box 17 – Royalties from Canadian sources

Identify a box in the "Other information" area as box 17. In the "Amount box," enter the royalties paid during the year. Royalties include payments for the use of a work, an invention, or a right for production from natural resources.

Box 18 – Capital gains dividends

Enter the amount of capital gains dividends that we consider a capital gain and that were paid by:

  • an investment corporation
  • a mortgage investment corporation
  • a mutual fund corporation
Note

You do not need to submit a T5 slip if capital gains dividends are the only dividends.

Box 19 – Accrued income: Annuities

Identify a box in the "Other information" area as box 19, and in the "Amount box," enter:

  • the accrued earnings on a life insurance policy to be included in a policyholder's income under section 12.2
  • the annuity payments to be included in income under former paragraph 56(1)(d.1) for annuity contracts issued before 1990

Box 21 – Report code

Enter on each slip one of the following codes to indicate whether the slip is:

  • "O" original
  • "A" amended (changing the financial data or identification information)
  • "C" cancelled

When using code "A" or "C", enter a description at the top of the T5 slip (for example, "AMENDED" or "CANCELLED") and include a letter of explanation when you file a copy of the slip with us. For more information, see Chapter 6 – After you file.

Box 22 – Recipient identification number

If the recipient is an individual (other than a trust), enter the individual's social insurance number (SIN). For interest credited to a joint account, enter the SIN of only one of the individuals.

You have to make a reasonable effort to get the recipient's SIN. If you do not, you may be liable to a $100 penalty for each time you do not provide the SIN on a slip. However, when a person tells you that he or she does not have a SIN but is applying for one, make sure you complete and file the return before the due date. If you have not received the recipient's SIN by the time you prepare the T5 slip, leave box 22 blank.

For more information on your obligation to provide a valid SIN, see Failure to provide a social insurance number (SIN) on an information return.

Note

If you are reporting a payment made in trust to an institution for an individual (for example, a payment of interest made to the trustee of a self-directed RRSP), do not enter the individual's SIN in box 22.

If the recipient is a trust, enter the trust account number.

If the recipient is a business (sole proprietor, partnership, or corporation), enter the recipient’s 15 character program account number in this area.

The program account number consists of three parts:

  • The nine‑digit BN number identifies the business

  • The two‑letter program identifier identifies the type of program account

  • The four‑digit reference number identifies each account in a program that a business may have

Box 23 – Recipient type

Enter one of the following codes to identify the recipient to whom the investment income was paid:

"1" for an individual

"2" for a joint account (two or more individuals)

"3" for a corporation

"4" for an association, trust (RRSP trustee, fiduciary-trustee, nominee, or estate), club, or partnership

"5" for a government, government enterprise, or international organization

Box 24 – Actual amount of eligible dividends

Enter the actual amount of eligible dividends, or the amount we deem to be eligible dividends. Eligible dividends are paid after 2005 by corporations resident in Canada to individual shareholders resident in Canada.

Among other requirements, to be eligible dividends, taxable dividends must have been designated as such by the corporation paying the taxable dividend.

For more information about eligible dividends see Guide T4012, T2 Corporation – Income Tax Guide.

Do not include:

Box 25 – Taxable amount of eligible dividends

Complete box 25 only for individuals resident in Canada (other than a trust that is a registered charity). Enter in box 25 the total of the amount from box 24 plus the taxable gross-up amount. The taxable gross-up amount is equal to 38% of the amount of dividends reported in box 24 that were paid in 2012 and subsequent tax years.

Do not enter an amount in box 25 if the dividends entered in box 24 are paid to a corporation.

Box 26 – Dividend tax credit for eligible dividends

Complete box 26 only for individuals resident in Canada (other than a trust that is a registered charity). For the years 2012 and later, the amount you enter is 15.0198% of the amount entered in box 25 or 6/11 of the taxable gross-up amount, accordingly.

Do not enter an amount in box 26 if the dividends entered in box 24 are paid to a corporation.

Box 27 – Foreign currency

Leave this area blank if you are reporting amounts in Canadian dollars.

If you cannot report amounts in Canadian dollars, identify the foreign currency according to the International Standard Organization (ISO) standard 4217 called Codes for the Representation of Currencies and Funds. Enter the appropriate three-character alphabetic or numeric codes if you are filing on paper.

If possible, use the alphabetic codes. For example:

USD – United States, dollar
JPY – Japan, yen
HKD – Hong Kong, dollar
AUD – Australia, dollar
NZD – New Zealand, dollar
DKK – Denmark, krone
GBP – United Kingdom, pound
EUR – European Union, euro
OTH – Other

Note

If you are filing electronically, you must use the alphabetic code.

When you report amounts in foreign currency, keep the following rules in mind:

  • do not combine different foreign currency types on a T5 slip. Report only one type of foreign currency on each slip
  • print the name of the foreign currency on the slip (for example, U.S. DOLLARS) under boxes 15 and 16, for the recipient's benefit
  • if you file a T5 information return and leave box 27 blank, we will process the amounts on the T5 slips as Canadian dollars
  • when completing your T5 Summary, you only have to enter one total income amount, whether or not the T5 slips are made up of different currency types

Box 28 – Transit

If you are reporting for a financial institution or any similar business, enter the recipient's transit code or branch identification code (up to eight characters) in this area.

Box 29 – Recipient account

If you can identify the recipient by an account number or policy number, enter the appropriate characters (up to 12) in this area.

Box 30 – Equity linked notes interest

Identify a box in the “Other information” area as box 30. In the “Amount box,” enter the total interest that is deemed to accrue pursuant to subsection 20(14.2) of the Act from the assignment or transfer of linked notes.

A linked note is a debt obligation, most often issued by a financial institution, the return on which is linked in some manner to the performance of one or more underlying assets or indexes over the term of the obligation. For assignments or other transfers of debt obligations (that are at any time described in paragraph 7000(1)(d) of the Income Tax Regulations) that occur after 2016, any gain realized at the time of the transfer is deemed to be interest that accrued on the debt obligation for a period commencing before the time of the transfer and ending at the time of the transfer.

For information on calculating the amount of this deemed interest, see subsection 20(14.2) of the Income Tax Act.

Distributing the T5 slip

You can send recipients an electronic copy of their T5 slips, by the last day of February following the calendar year to which the information return applies, but they must have consented in writing or by email to receive the slips electronically.

Note

If you file your information return over the Internet or on electronic media, do not send us the paper copy of the forms that make up the return.

If you are filing on paper, send us each T5 slip (three slips printed per sheet), along with the T5 Summary, by the last day of February following the calendar year to which the information return applies.

Send these forms to:

T5 Program
Jonquière tax centre
PO Box 1300 LCD Jonquière
Jonquière QC  G7S 0L5

Send two copies of the T5 slip to the recipient by the last day of February following the calendar year to which the information return applies.

You do not have to keep a copy of the T5 slips. However, you have to keep the information from which you prepared the slips in an accessible and readable format.

Note

When a business or activity ends, you have to send the appropriate copies of the T5 slips to the recipients and us no later than 30 days after the date the business or activity ended.

Chapter 5 – T5 Summary

You have to complete a T5 Summary if you prepare one or more T5 slips. Do not send us a summary without T5 slips or a summary without amounts to report.

If you file multiple slips for a business account, only one summary is required for the entire account.

Note

An address change cannot be done using the T5 Summary return. To update your business's address online, go to:

If you are not yet registered for the CRA’s online services, you must change your address by contacting your tax centre.

Completing the T5 Summary

Before completing the T5 Summary, see Chapter 3 – Filing methods. We can process your T5 information return more efficiently if you follow those instructions.

Do not include amounts on the T5 Summary for which you have not prepared a T5 slip.

Information return for the year ending December 31

Enter the four digits of the calendar year to which the information return relates.

Program account number

Enter the 15 characters of your program account number in this area.

The program account number consists of three parts:

  • The nine-digit BN number identifies the business
  • The two-letter program identifier identifies the type of program account, in this case, "RZ"
  • The four-digit reference number identifies each account in a program that a business may have

Please note, in order to create or maintain account numbers, you must be authorized to do so.

Additional T5 Summary

Use this box if you are preparing more than one T5 information return and the returns are:

  • for the same filer with the same account number
  • for the same year

Check this box on the T5 Summary for the second return and on each following T5 Summary as described above.

Name and address of filer or nominee (four lines)

Enter the name of the filer or nominee, and the full address of the branch or office filing the T5 Summary. Use the two-letter code for the province or territory. The codes are listed in Appendix C.

Have you filed a T5 information return before?

If you have sent us a T5 information return in a previous year, check the "Yes" box.

If this is the first year you are sending us a T5 information return, check the "No" box.

Language

Check the appropriate box. Any future correspondence and information we send you will be in the language you choose.

Line 10 – Actual amount of dividends other than eligible dividends

Enter the total from box 10 on all T5 slips.

Line 11 – Taxable amount of dividends other than eligible dividends

Enter the total from box 11 on all T5 slips.

Line 12 – Dividend tax credit for dividends other than eligible dividends

Enter the total from box 12 on all T5 slips.

Line 13 – Interest from Canadian sources

Enter the total from box 13 on all T5 slips.

Line 14 – Other income from Canadian sources

Enter the total from box 14 on all T5 slips.

Line 15 – Foreign income

Enter the total from box 15 on all T5 slips. You have to report this amount in Canadian currency. If you cannot report the amount in Canadian currency, see the instructions for box 27.

Line 16 – Foreign tax paid

Enter the total from box 16 on all T5 slips. You have to report this amount in Canadian currency. If you cannot report the amount in Canadian currency, see box 27.

Line 17 – Royalties from Canadian sources

Enter the total from box 17 on all T5 slips.

Line 18 – Capital gains dividends

Enter the total from box 18 on all T5 slips.

Line 19 – Accrued income: Annuities

Enter the total from box 19 on all T5 slips.

Line 24 – Actual amount of eligible dividends

Enter the total from box 24 on all T5 slips.

Line 25 – Taxable amount of eligible dividends

Enter the total from box 25 on all T5 slips.

Line 26 – Dividend tax credit for eligible dividends

Enter the total from box 26 on all T5 slips.

Line 31 – Total number of T5 slips filed

Enter the total number of T5 slips you are filing with the T5 Summary. Do not include in this total any slips you marked as being void or that you left blank.

Unclaimed amounts later paid out

We require special reporting when you have been holding an unclaimed amount and you finally identified the rightful owner and paid out the amount. A separate information return is required to report these amounts. For information on how to complete the T5 Summary and T5 slips to report unclaimed amounts you later paid out, see Chapter 10 – Unclaimed amounts: Dividends or interest.

Line 32 – Unclaimed amounts: Dividends and interest

Enter the total of the amounts you identified as unclaimed dividends or unclaimed interest later paid out. These amounts are included in box 10, 13, or 24 of the T5 slips that you identified as "UNCLAIMED DIVIDEND ACCOUNT" or "UNCLAIMED INTEREST ACCOUNT." For more information, see Chapter 10 – Unclaimed amounts: Dividends or interest.

Line 33 – Tax deducted from unclaimed amounts

Enter the total amount of tax deducted shown on the T5 slips you identified as "UNCLAIMED DIVIDEND ACCOUNT" or "UNCLAIMED INTEREST ACCOUNT." The amount of tax deducted is shown on the T5 slip directly below the recipient's postal code. For more information, see Chapter 10 – Unclaimed amounts: Dividends or interest.

Lines 41 and 42 – Contact person

Enter the name and telephone number of a person who can answer any questions we may have about the T5 information return.

Certification

A person with signing authority has to sign and date the information return in this area of the T5 Summary.

Chapter 6 – After you file

When we receive your information return, we check it to see if you have prepared it correctly. After an initial review, we enter your return into our processing system, which captures the information and performs various validity and balancing checks. If there are any problems, we may contact you.

Amending, cancelling, adding, or replacing slips

After filing your information return, you may notice an error on the T5 slips. If so, you will have to prepare an amended slip to correct the information. Give the recipient two copies of the slips. Do not include slips that have no changes.

Amending or cancelling slips over the Internet

To amend a slip over the Internet, change only the information that is incorrect and retain all of the remaining information that was originally submitted. Use summary report type code "A" and slip report type code "A."

To cancel a slip, do not change any information that was contained on the original slip. Use summary report type code "A" and slip report type code "C."

For more information about amending or cancelling information returns using the Internet, go to File by internet file transfer (XML).

Amending or cancelling slips on paper

If you choose to file your amended return on paper, clearly identify the new slips as amended or cancelled by writing "AMENDED" or "CANCELLED" at the top of each slip. Make sure you fill in all the necessary boxes, including the information that was correct on the original slip. Send two copies of the slips to the recipient.

Send one copy of the amended or cancelled slips with a letter explaining the reason for the amendment or cancellation to your tax centre. Do not file an amended or cancelled Summary.

Adding slips

After you file your information return, you may discover that you need to send us additional slips. If you have original slips that were not filed with your information return, file them separately either electronically or on paper.

If you file additional slips on paper, clearly identify the new slips by writing "ADDITIONAL" at the top of each slip. Send one copy of the additional slips to your tax centre.

We also accept additional original slips in electronic format. For more information, see Chapter 3 – Filing methods or go to Filing Information Returns Electronically (T4/T5 and other types of returns).

Note

Any additional T5 slips that are filed after the due date may result in a late filing penalty. For the penalty structure, see Late filing and failure to file the T5 information return or go to Penalty for failure to file an information return by the due date.

Replacing slips

If you issue T5 slips to replace copies that were lost or destroyed, do not send us copies of these slips. Clearly identify these copies as a "DUPLICATE" for your client, and keep a copy for your records.

Chapter 7 – Payments to non-residents of Canada

You have to file an NR4 information return to report amounts paid or credited, or amounts we consider to be paid or credited, by residents of Canada to non-resident persons.

You have to do this if the total annual amount you paid or credited is $50 or more, or if you withheld tax (regardless of the amount you paid or credited).

For more information on how to complete the NR4 return, see Guide T4061, NR4 – Non-Resident Tax Withholding, Remitting, and Reporting.

You have to withhold income tax of 25% (or the percentage established under a tax convention or agreement) on amounts you paid or credited to non-residents.

You have to complete the remittance part (Part 2) of Form NR76, Non-Resident Tax – Statement of Account, and send it with the tax to:

Sudbury Tax Centre
Canada Revenue Agency
P.O. Box 3800, Station A
Sudbury ON  P3A 0C3

Alternatively, you can make the payment to your chartered bank by the 15th day following the month in which the tax was withheld.

For more information, see Information Circular IC76-12, Applicable Rate of Part XIII Tax on Amounts Paid or Credited to Persons in Countries with Which Canada Has a Tax Convention, and Information Circular IC77-16, Non-Resident Income Tax.

If, as a resident of Canada who pays or credits amounts to or for a non-resident of Canada, you do not withhold (or you withhold but do not remit) non-resident tax, you are liable for the amount of tax you should have withheld and remitted, plus a penalty of 10% of the tax. We charge interest, compounded daily at the prescribed rate, on the total of the tax, penalties, and outstanding interest.

For more information about how we determine an individual's residence for tax purposes, see Income Tax Folio S5-F1-C1, Determining an Individual's Residence Status.

Chapter 8 – Accrued interest

Contracts acquired after 1989

You have to prepare T5 slips each year for all investment contracts acquired after 1989. You have to prepare these slips annually even if you did not pay the interest.

What is an investment contract?

An investment contract is any debt obligation other than those excluded by the definition of investment contract in subsection 12(11) of the Act. For example, a debt obligation that provides for the payment of interest at least annually is not an investment contract because it is excluded by paragraph (i) of the investment contract definition.

A common type of investment contract would be a written agreement with a financial institution where a sum of money is invested for more than one year and the accrued interest on the funds invested is only paid at maturity (when the term of the contract expires).

On the T5 slip, enter the total of all interest accrued to each anniversary day. Do not include any interest you previously reported.

The anniversary day is:

  • the day that is one year minus a day after the day the contract was issued (and every successive one-year interval after that day)
  • the day the contract was disposed of

We consider an investment contract to be disposed of when it is converted, cancelled, sold, or redeemed.

Example

An investment contract was issued on October 29 of year 1. It is disposed of on April 7 of year 5, and all the interest is paid then. You have to prepare and file a T5 slip each year to report the interest that accrues to:

  • October 28 of year 2
  • October 28 of year 3
  • October 28 of year 4
  • April 7 of year 5

Contracts acquired after November 12, 1981, and before 1990

For investment contracts (other than Canada Savings Bonds and debt obligations in bearer form) acquired after November 12, 1981, and before 1990, you have to prepare a T5 slip to report the interest that accrues to every third anniversary of the investment contract. Do not include interest you previously reported.

The third anniversary is the third December 31 after the end of the year in which the contract was originally issued, and each third December 31 after that.

If a contract is disposed of before its third anniversary date, or between third anniversary dates, you have to prepare a T5 slip to report the interest earned from the date it was acquired, or its previous third anniversary, to the date of disposal.

The first three-year anniversary for investment contracts acquired before 1982 began on December 31, 1988.

Contracts acquired before November 13, 1981

Investment contracts acquired before November 13, 1981, are exempt from the three-year reporting requirement if they meet all the conditions in former subsection 12(10). However, contracts that the recipient can cancel that are subject to a penalty on payout are not exempt.

Interest adjustments and penalties

Sometimes an individual may withdraw funds from an investment contract after receiving T5 slips for a number of years. Withdrawing funds can often mean an early redemption penalty, which lowers the interest rate you previously calculated on the investment contract. As a result, the actual interest you pay to the recipient is less than the total of the accrued interest reflected on the T5 slips you issued to the recipient in previous years.

In such cases, do not issue a negative T5 slip or amend the slips for previous years. Under subsection 20(21), the recipient is entitled to deduct, in the year in which the investment was disposed of, the excess interest previously included in income.

Indexed debt obligations issued after October 16, 1991

An indexed debt obligation is a debt obligation with terms or conditions that provide for an adjustment (determined by a change in the buying power of money) to the amount owing under the obligation for a period during which it was outstanding.

We treat as interest any increase or decrease in the amount owing under an indexed debt obligation relating to a change in the buying power of money.

If the buying power of money decreases, you have to treat as interest any additional amount the holder of the obligation received or was entitled to receive in the year.

If the buying power of money increases, treat the decrease in the amount owing under an indexed debt obligation as interest the debtor received or was entitled to receive in the year. In this situation, the holder of the obligation can deduct the amount paid to the debtor.

Chapter 9 – Blended payments and deemed dividends

Blended payments

A blended payment is an amount made up partly of capital and partly of interest or some other type of income. You may not be able to easily identify the interest and capital parts. Treat as interest on a debt obligation the part that can be reasonably considered to be interest. Report this amount in the same way you would report any other interest.

We do not consider a payment to be a blended payment if:

  • the interest or income element is definitely known
  • the amount is received either as an annuity payment or in satisfaction of the recipient's rights under an annuity contract
  • the payment is from certain obligations issued at a discount

Deemed dividends

Section 84 – Deemed dividends

In some situations, we consider that an amount paid by a corporation resident in Canada and received by a shareholder is a dividend. In general terms, the situations include any one of the following:

a) the paid-up capital of the corporation increases other than by means of a stock dividend without a corresponding increase in net assets or decrease in net liabilities

b) property is distributed to shareholders when a corporation's business is wound-up, discontinued, or reorganized

c) any of the company's own shares are redeemed, acquired, or cancelled, other than by an ordinary purchase in the open market

d) the paid-up capital for any class of shares of capital stock is reduced

Generally, you calculate the deemed dividend for each of the situations described above as follows:

  • For situation a), include the increase in paid-up capital of the shares in that class. However, subtract any increase in the value of net assets (or decrease in the value of net liabilities) or any decrease in the paid-up capital of the shares of any other class.
  • For situation b), include the full amount or value of the funds or property distributed. However, subtract any reduction in the paid-up capital for the class of shares for which the distribution was made.
  • For situation c), include the full amount paid. However, deduct the paid-up capital for the shares that were redeemed, acquired, or cancelled.
  • For situation d), include the amount paid minus any decrease in paid-up capital.

For more information on deemed dividends, visit the Canada Revenue Agency or call 1-800-959-5525.

Subsection 15(3) – Deemed dividends

Under certain circumstances, we may consider the interest or dividends paid by a corporation resident in Canada on an income bond or income debenture to be dividends.

If they are eligible dividends, report these deemed dividends in boxes 24 and 25 of the T5 slip if the corporation pays them to an individual (see Box 24 – Actual amount of eligible dividends and Box 25 – Taxable amount of eligible dividends). Report them in box 24 only, if they are paid to a corporation.

If they are dividends other than eligible dividends, report these deemed dividends in boxes 10 and 11 of the T5 slip if the corporation pays them to an individual (see Box 10 – Actual amount of dividends other than eligible dividends and Box 11 – Taxable amount of dividends other than eligible dividends). Report them in box 10 only, if they are paid to a corporation.

Report amounts we do not consider to be dividends as interest income in box 13 or 14.

Chapter 10 – Unclaimed amounts: Dividends or interest

We use the term unclaimed dividends or unclaimed interest to refer to dividends or interest you receive in a year for another person (the beneficial owner) who remains unknown at the end of the next year.

Remittances

If you received any of these unclaimed amounts, you have to deduct a specified percentage (see the following table) as tax payable by that beneficial owner. Send the tax you withhold, along with a statement showing the period covered, the gross income amount, and the amount of tax you deducted to your tax centre, no later than 60 days after the end of your next tax year (due date). Send the payment and statement separately from any T5 information returns you are filing. For more details, see the Example.

Type of unclaimed amount with corresponding percentage to be withheld and remitted and the remitting method
Type of unclaimed
amount
Percentage to be withheld
and remitted
Remitting
method
Dividend 33.3333% Statement
Interest 50% Statement

We charge interest, compounded daily at the prescribed rate, on amounts you deduct but do not send us before the due date. We will charge interest from the date the remittance is due to the actual date you remit the amounts you deducted. Both the interest charges and the tax you deduct are payable to the receiver general.

A penalty applies if you do not remit tax withheld. The penalty is 10% of the amount you withheld but did not remit. If we have assessed this penalty, and then for a second time in the same calendar year you do not remit tax knowingly or under circumstances amounting to gross negligence, you could be subject to a penalty of 20% of the amount you withheld but did not remit.

Note

You do not have to withhold and remit tax for unclaimed amounts you included in your income for the current or any previous year, or on which you withheld and remitted tax in a previous year.

Reporting requirements

You have to follow special procedures to report unclaimed amounts you held and later paid out to the rightful owner. An owner who is a resident of Canada must report the gross amount of dividends or interest for the year during which you originally received the amount.

You have to prepare a separate T5 slip and T5 Summary stating the amount you received for the recipient, the year in which you received the amount, and the amount of tax you remitted on it.

If you pay unclaimed amounts you received in different calendar years to the same claimant in the same year, make sure you prepare separate T5 slips and T5 Summary forms for each calendar year in which you actually received the amounts. The calendar year on each T5 slip you issue must be the calendar year in which you received the amount, not the year you paid it to its rightful owner.

Prepare a T5 slip for the previously unclaimed amount in all cases, regardless of the amount of income.

When completing the T5 slip, enter the year you made the payment and the amount of tax you deducted in the space directly below the recipient’s name and address. Identify the T5 slip with the words "UNCLAIMED DIVIDEND ACCOUNT" or "UNCLAIMED INTEREST ACCOUNT" directly below the area for your name and address. Also, enter the name of the person paying the amount, if different from that of the filer, directly below this description. See the examples of T5 slips.

A separate T5 Summary has to accompany these T5 slips. Identify the T5 Summary by entering either "UNCLAIMED DIVIDEND ACCOUNT" or "UNCLAIMED INTEREST ACCOUNT" on the second line provided for the name and address of the filer or nominee.

Note

Submissions for unclaimed dividends and unclaimed interest must be filed on paper.

To calculate the federal dividend tax credit on unclaimed dividends later paid out, use the rate in effect for the calendar year in which you received the dividends.

Rates in effect for the calendar year in which you received eligible dividends
Eligible dividends received in The dividend tax credit percentage of the taxable amount Gross-up factor
2006 to 2009 18.9655% 45%
2010 17.9739% 44%
2011 16.4354% 41%
2012 and later years 15.0198% 38%
Rates in effect for the calendar year in which you received non-eligible dividends
  Non-eligible dividends received in    The dividend tax credit percentage of the taxable amount   Gross-up factor
2009 to 2013    13.3333% 25%
2014 to 2015    11.0169% 18%
 2016 to 2017      10.5217% 17%
2018    10.0313% 16%
2019    9.0301% 15%

For more information, see Information Circular IC71-9, Unclaimed Dividends.

If unclaimed interest or dividends received in 1987 or previous years are eligible for the interest and dividend income deduction, indicate this on the T5 slip.

Example

Over a period of several years, Agents Inc. (Agents) received dividend payments from XYZ Company Limited (XYZ), a Canadian public corporation subject to the general corporate income tax rate. Some of the dividends were on shares held by Agents for an unidentified shareholder. The dates and amounts appear in columns A and B of the table.

These amounts represent unclaimed dividends. They remained unclaimed on April 30, Agents' next fiscal year end. Before the due date (no later than 60 days after the year-end following the year in which the amounts are received), Agents deducted 33.3333% of the dividend amount (as shown in column D) and sent it to us.

On June 7, 2019, Mr. Albert Chang advised Agents that he had inherited some stock in XYZ and was expecting dividends totalling $3,000.

Agents paid Mr. Chang $2,667 (as shown in column E); the amount remaining after the unclaimed dividend tax was remitted. Agents gave him separate T5 slips for 2017 and 2018 showing the actual amounts in column B. The T5 for 2019 will be issued on or before the last day of February 2020.

The $333.33 tax remitted is available as a credit to Mr. Chang for the 2019 tax year when he files his income tax and benefit return.

Unclaimed dividends example information
Date dividend received by Agents

A
Dividend amount

B
Deadline for remitting tax on unclaimed amount

C
Amount of tax remitted by Agents

D
Available for Mr. Chang

E
March 6, 2017 $1,000 June 29, 2018 $333 $667
April 28, 2018 $1,000 June 29, 2019Footnote 1 N/A $1,000Footnote 1
May 27, 2019 $1,000 N/AFootnote 1 N/A $1,000Footnote 1
Totals $3,000   $333 $2,667

Unclaimed dividends later paid out – Complete the T5 slip for the 2017 dividends.

Unclaimed dividends later paid out – Complete the T5 slip for the 2018 dividends.

Appendix A – Forms

T5 slip

T5 slip

T5 Summary

T5 Summary

Appendix B – Distributing your copies

How to prepare, distribute and file your T5 slips with your T5 Summary.

You can use this form whether you file your information return electronically or on paper. For more information on how to complete the T5 slip and the T5 Summary, see Completing the T5 slip and Completing the T5 Summary.

When filing electronically: Follow the instructions and technical specifications at Filing Information Returns Electronically (T4/T5 and other types of returns) to file your information return. Produce two paper copies for the recipient and one copy (optional) for your records.

image described below
Example – Filing electronically

When filing electronically, follow the instructions and technical specifications at Filing Information Returns Electronically (T4/T5 and other types of returns) to file your information return. Produce two paper copies for the recipient and one copy (optional) for your records.

For example, if you file one copy electronically and have three recipients, each recipient will receive two copies. If your recipients are Paul A., Max B., and Marie C., Paul A. receives two copies, Max B. receives two copies, and Marie C. receives two copies.

When filing on paper:

  • Use one sheet for three different recipients for the copy you are sending to the CRA. Do not separate the slips when you send them with your T5 Summary.
  • Use a separate sheet for the two copies you are giving to the recipient and the copy you are keeping in your records.
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Example – Filing on paper

When filing on paper, use one sheet for three different recipients for the copy you are sending to the CRA. Do not separate the slips when you send them with your T5007 Summary. Use a separate sheet for the two copies you are giving to the recipient and the copy you are keeping in your records.

For example, if you have three recipients (Paul A., Max B., and Marie C.), the copy that you send to CRA will include Paul A., Max B., and Marie C. on the same sheet. Paul A. receives two copies, Max B. receives two copies, and Marie C. receives two copies.

Appendix C – Provincial and territorial codes

Use the following abbreviations when you enter the province or territory on the T5 slip and T5 Summary.

List of provinces and territories with corresponding two-letter codes
Provinces Codes
Newfoundland and Labrador NL
Prince Edward Island PE
Nova Scotia NS
New Brunswick NB
Quebec QC
Ontario ON
Manitoba MB
Saskatchewan SK
Alberta AB
British Columbia BC
Nunavut NU
Northwest Territories NT
Yukon YT

Appendix D – References

The following publications relate to topics in this guide and are available at Forms and publications or by calling 1-800-959-5525.

Appendix E – Income Tax Act references

You may find these references for the following topics helpful when using this guide. References are to the Income Tax Act, except where preceded by the letters "Reg.", in which case the reference is to the Income Tax Regulations.

List of legislation topics and corresponding legislation references
Topic Income Tax Act reference
Accrued interest 12(4), (9), (11), 20(14), (21), Reg. 201(4)
Blended payments 16(1), (2), (3), (4), (5)
Capital gains dividends 130(2), 130.1(4), 131(1)
Deemed dividends 84, 15(3)
Distribution of taxpayers' portions of returns Reg. 209(1), (2)
Dividends from Canadian corporations 82(1), 130.1(2), 137(4.1)
Due date Reg. 205(1), (2)
Electronic filing (Mandatory electronic filing) Reg. 205.1
Eligible funeral arrangements (EFA) 148.1(1), (2), (3), 12(1)(z.4), Reg. 201(1)
Failure to make or file an information return 238(1)
Failure to provide identification number 162(5), (6)
Failure to provide information on a form 162(5)
Failure to provide a social insurance number 162(5), (6)
Failure to remit amount withheld 227(9)
Federal dividend tax credit 121
Foreign spin-offs 86.1
Indexed debt obligations 248(1), Reg. 700(1)
Interest from Canadian sources 130.1(2), 137(4.1), Reg. 201(1)
Interest on penalties 161(11)
Investment contracts 12(4), (11), Reg. 201(4)
Late-filing penalty 162(7)
Late filing penalty – prescribed information returns 162(7.01)
Payments to non-residents Reg. 202(1)
Requirements for preparing an information return 221(1), Reg. 201
Royalties from Canadian sources Reg. 201(1)(c)
Unclaimed interest and dividends 153(4)

Addresses of tax centres

Filers served by a tax services office of the following list should deal with the corresponding tax centre or office. 

British Columbia, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Nunavut, Yukon, Belleville, Chicoutimi, Hamilton, Kingston, Kitchener/Waterloo, Laval, Montréal, Montérégie-Rive-Sud, Ottawa, Outaouais, Peterborough, Québec, Regina, Rimouski, Rouyn-Noranda, Sherbrooke,
St. Catharines, Sudbury (North-Eastern Ontario onlyFootnote 1 ), and Trois-Rivières:

Prince Edward Island Tax Centre
275 Pope Road
Summerside PE  C1N 6A2

Toronto Centre, Toronto East, Toronto North, Toronto West, and Sudbury (Sudbury/Nickel Belt onlyFootnote 2 ): 

Sudbury Tax Centre
Post Office Box 20000, Station A
Sudbury ON  P3A 5C1

Alberta, Manitoba, Northwest Territories, London, Saskatoon, Thunder Bay, and Windsor:

Winnipeg Tax Centre
Post Office Box 14000, Station Main
Winnipeg MB  R3C 3M2

Online services

Handling business taxes online

Save time using the CRA's online services for businesses. You can:

  • make payments to the CRA by setting up pre-authorized debit agreements in My Business Account or by using the My Payment service
  • file a return, view the status of filed returns and amend returns online
  • send documents to the CRA
  • authorize a representative for online access to your business accounts
  • register to receive email notifications and to view mail from the CRA in My Business Account
  • change addresses
  • manage direct deposit information
  • send an enquiry about your audit

To register or log in to our online services, go to:

For more information, go to E-services for business.

CRA BizApp

CRA BizApp is a mobile web app for small business owners and sole proprietors. The app offers secure access to view accounting transactions, pay outstanding balances, make interim payments, and more.

You can access CRA BizApp on any mobile device with an Internet browser—no app stores needed! To access the app, go to Mobile apps – Canada Revenue Agency.

Receiving your CRA mail online

Sign up for email notifications to get most of your CRA mail, like your notice of assessment, online.

For more information about this service, go to Email notifications from the CRA – Businesses.

Authorizing the withdrawal of a pre-determined amount from your bank account

Pre-authorized debit (PAD) is a secure, online self-service payment option for individuals and businesses. This option lets you set the payment amount you authorize the CRA to withdraw from your Canadian chequing account to pay your tax on a specific date or dates you choose. You can set up a PAD agreement using the CRA’s secure My Business Account service or the CRA BizApp at Mobile apps – Canada Revenue Agency. PADs are flexible and managed by you. You can use My Business Account to view historical records, modify, cancel, or skip a payment. For more information, go to Pay by pre-authorized debit.

Electronic payments

Make your payment using:

  • your financial institution’s online or telephone banking services
  • the CRA’s My Payment service at My Payment
  • your credit card through one of the CRA’s third-party service providers
  • PayPal through one of the CRA’s third-party service providers
  • pre-authorized debit at My Business Account

For more information, go to Payments to the Canada Revenue Agency.

For more information

What if you need help?

If you need more information after reading this guide, go to Taxes or call 1-800-959-5525.

Direct deposit

Direct deposit is a fast, convenient, reliable, and secure way to get your CRA payments directly into your account at a financial institution in Canada. For ways to enrol for direct deposit or for more information, go to Direct deposit - Canada Revenue Agency.

Forms and publications

To get our forms and publications, go to Forms and publications or call 1-800-959-5525.

Tax Information Phone Service (TIPS)

For personal and general tax information by telephone, use our automated service, TIPS, by calling 1-800-267-6999.

Teletypewriter (TTY) users

If you have a hearing or speech impairment and use a TTY call 1-800-665-0354.

If you use an operator-assisted relay service, call our regular telephone numbers instead of the TTY number.

Electronic mailing lists

The CRA can notify you by email when new information on a subject of interest to you is available on our website. To subscribe to our electronic mailing lists, go to Canada Revenue Agency electronic mailing lists.

Complaints and disputes

Service-related complaints

You can expect to be treated fairly under clear and established rules, and get a high level of service each time you deal with the Canada Revenue Agency (CRA); see the Taxpayer Bill of Rights.

If you are not satisfied with the service you received, try to resolve the matter with the CRA employee you have been dealing with or call the telephone number provided in the CRA's correspondence. If you do not have contact information, go to Contact information – Canada Revenue Agency.

If you still disagree with the way your concerns were addressed, you can ask to discuss the matter with the employee's supervisor.

If you are still not satisfied, you can file a service complaint by filling out Form RC193, Service-Related Complaint. For more information and how to file a complaint, go to Make a service complaint.

If the CRA has still not resolved your service-related complaint, you can submit a complaint with the Office of the Taxpayers' Ombudsman.

Formal disputes (objections and appeals) 

If you disagree with an assessment, determination, or decision, you have the right to register a formal dispute.

Reprisal complaint

If you have previously submitted a service-related complaint or requested a formal review of a CRA decision and feel that, as a result, you were not treated impartially by a CRA employee, you can submit a reprisal complaint by filling out Form RC459, Reprisal Complaints.

For more information about reprisal complaints and disputes, go to Reprisal complaints.

Due dates

When the due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, we consider your payment to be on time if we receive it on the next business day. Your return is considered on time if we receive it or if it is postmarked on or before the next business day.

For more information, go to Important dates for corporations.

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