Guide T5007 – Return of Benefits

From: Canada Revenue Agency

Available electronically only

T4115(E) Rev. 19

Our publications and personalized correspondence are available in braille, large print, e-text, or MP3 for those who have a visual impairment. For more information, go to Order alternate formats for persons with disabilities or call 1-800-959-5525.

La version française de ce guide est intitulée Guide T5007 – Déclaration des prestations.

Confidentiality of information

Under the Privacy Act, the personal information you provide on the T5007 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.

Table of contents

Is this guide for you?

Sections 232 and 233 of the Income Tax Regulations require every person who pays an amount for workers' compensation benefits or social assistance to file an information return to report those payments. This is done using the T5007 information return. It consists of a T5007 Summary and all related T5007 slips. You can use these to report income payments of either type.

This guide is designed to help workers' compensation boards, social services agencies, and other organizations determine:

  • what types of benefits or assistance to report
  • when and where to file the T5007 information return

This guide also explains how to fill out the T5007 Summary and the related T5007 slips.

What's new?

Internet file transfer availability

Internet filing is available from January 6, 2020.

Chapter 1 – General information

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

If you are filing your T5007 information return electronically, see Chapter 5 – Filing methods.

T5007 slip

Use T5007 slips to identify recipients of workers' compensation benefits and social assistance payments, and to report the amount of benefits and assistance paid to them.

There are three individual T5007 slips on each page. These can be downloaded and printed and the information can be typed or filled out by hand.

The T5007 slips make it easier for recipients of these benefits or assistance payments to determine the amounts they received during the year. The income shown on the T5007 slip is not taxable, but the recipients must include the amounts in their net income. The recipients need this information if they want to claim the guaranteed income supplement and certain tax credits and payments to which they may be entitled. These include the Canada child benefit, the goods and services tax/harmonized sales tax credit, some provincial or territorial tax credits and benefits, and some non-refundable tax credits such as the age amount, the spouse or common law partner amount, and medical expenses.

T5007 Summary

The T5007 Summary is a one-part form you use to total all the amounts you are reporting on the T5007 slips. Do not send us a paper copy of the T5007 Summary if you file your information return electronically.

Due date

You have to file a T5007 information return on or before the last day of February following the calendar year to which the information return applies. If the last day of February is a Saturday, Sunday, or 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.

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

You can send recipients an electronic copy of their T5007 slips. The recipient must have consented in writing or by email to receive the slips electronically.

Send the recipients' copies of the T5007 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 T5007 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 filing 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) - Overview.

Chapter 2 – Who has to file a T5007 information return?

Any provincial, territorial, municipal agency or board, or similar body has to file a T5007 information return when it:

  • makes social assistance payments based on a means, needs, or income test
  • pays an amount to an individual for compensation under a federal, provincial, or territorial employees' or workers' compensation law for injury, disability, or death
  • adjudicates a claim and determines that an individual is entitled to compensation under a federal, provincial, or territorial employees’ or workers’ compensation law for injury, disability, or death even if :

    • it does not make a payment to the individual, or

    • the total compensation received by the individual exceeds the amount he or she is entitled to

Employers who continue to pay an employee's salary before and after a workers' compensation board claim is decided do not have to file the T5007 information return. For more information, see Box 10 – Workers' compensation benefits.

Chapter 3 – Benefits and assistance you have to report

Paragraphs 56(1)(u) and 56(1)(v) of the Income Tax Act describe social assistance payments and workers' compensation benefits that the recipient has to include in their income. The following list describes the most common types of workers' compensation benefits and social assistance payments. Although the list is not complete, it can help you determine what types of payments you should report.

Workers' compensation benefits

Workers' compensation benefits include the following types:

Injury

This is compensation paid under a federal, provincial, or territorial employees' or workers' compensation law for an injury. These amounts include benefits that are a wage-loss replacement for time lost from employment due to a compensable injury or condition.

Disability

This is compensation paid under a federal, provincial, or territorial employees' or workers' compensation law for a disability. These amounts include:

  • wage-loss replacement income paid to an injured worker who suffered a partial, total, temporary, or permanent disability as a result of a work-related accident
  • compensation for future loss of earnings made to an injured worker who suffers from an injury resulting in permanent impairment or temporary disability

Death

This is compensation paid under a federal, provincial, or territorial employees' or workers' compensation law as a result of death. These amounts include:

  • survivor benefits that are periodic payments to a dependent spouse or common-law partner, dependent children, or orphans
  • wage-loss replacement income periodically paid to a surviving spouse or common-law partner to replace the income that a worker who died in a work-related accident or as a result of an industrial accident would have earned

Social assistance payments

Social assistance payments are payments made to individuals or third parties based on a means, needs, or income test. They include payments for food, clothing, and shelter requirements. These amounts can also include actual rental or mortgage amounts paid for accommodation.

Chapter 4 – Benefits and assistance you do not have to report

Workers' compensation benefits

Do not report a payment or an award for:

  • medical expenses incurred by or for the employee
  • funeral expenses for the employee
  • legal expenses for the employee
  • job training or counselling for the employee that is not paid as part of, or in lieu of, wage replacement benefits
  • the death of the employee, other than periodic payments made after the death of the employee

Note

Do not include the interest part of retroactive workers' compensation payments in the benefit amount you report on the T5007 slip. This interest, which accumulates to the date the award is made, is not included in income. Do not issue a T5007 slip or a T5 slip for these interest payments.

Social assistance payments

Do not report a payment:

  • that is made in a year as part of a series of payments totalling $500 or less in the tax year
  • that is not part of a series of payments
  • for medical expenses incurred by or for the payee
  • for child-care expenses that include baby-sitting services, day-nursery services, or services provided at a boarding school or camp, if the cost for these services would otherwise qualify for a deduction under section 63 of the Income Tax Act
  • for funeral expenses for a person related to the payee
  • for legal expenses incurred by or for the payee or a person related to the payee
  • for job training or counselling for the payee or a person related to the payee

Note

Do not prepare a T5007 slip for social assistance payments for amounts (often called bed reservation fees) paid to individuals to keep their principal place of residence available for use by a foster person.

Chapter 5 – Filing methods

Internet filing is available from January 6, 2020. You must file information returns online 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 restrictions.

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 determined as follows:

Penalty for 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

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 Information Returns Electronically (T4/T5 and other types of returns).

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 T5007 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 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. 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 and 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 paper 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 “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:
    • 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) 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 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 T4 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:

T5007 Program
Jonquière Tax Centre
Post Office 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 or see Information Circular IC97-2R, Customized Forms.

Chapter 6 – Penalties and interest

Late filing and failure to file the T5007 information return

You have to file the T5007 information return (slips) and give the T5007 slips to the recipients on or before the last day of February following the calendar year to which the information return applies. If the last day of February is a Saturday, Sunday, or a public holiday, your information return is due the next business day. Note that several provinces and territories have their own unique holidays. Therefore, due dates may be affected by where you reside. For a list of public holidays, go to Public holidays.

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 T5007 information return (slips) is $100 and the maximum penalty is $7,500. For the complete penalty structure, go to Filing Information Returns Electronically (T4/T5 and other types of returns) - Overview.

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 the social insurance numbers from the individuals 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 a social insurance number (SIN) on a return

Make sure the social insurance number (SIN) and name you enter on the T5007 slip for each recipient are correct.

If the individual does not give you his or her SIN, you should 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, 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. If you do not, you may be subject to a penalty.

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

Interest on penalties

We charge interest, compounded daily at the prescribed rate, on the total amount of penalties and interest outstanding. Interest and penalties are payable to the receiver general. For the prescribed interest rates, go to Prescribed interest rates.

Cancel or waive penalties or interest

The CRA administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel or waive penalties or interest when taxpayers are unable to 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 2018 must relate to a penalty for a tax year or fiscal period ending in 2008 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 2018 must relate to interest that accrued in 2008 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.

Failure to provide a social insurance number

Individuals have to give their social insurance number (SIN) on request to anyone who has to prepare an information slip for them. A person who does not comply with this requirement is liable to a $100 penalty for each failure.

An individual who does not have a SIN has 15 days from the date of an information request to apply for one at any Service Canada Centre. Application forms and instructions are available on their website at Service Canada. After receiving the SIN, the individual has 15 days to provide it to the person who is preparing an information return.

For more information about SIN reporting requirements, see Information Circular IC82-2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips.

Using the social insurance 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 a social insurance number, or allow it to be communicated, without the written consent of the individual, other than as required or authorized by law or for the purpose for which it was provided.

If you use a social insurance 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.

Notice of assessment

We will issue a notice of assessment for the T5007 information return only if we apply a penalty.

Chapter 7 – Completing the T5007 slip

General information

Before completing the T5007 slips, see Chapter 5 – Filing methods. We can process your T5007 information return more efficiently if you follow those instructions.

Year

Enter the four digits of the calendar year in which the workers' compensation benefits or social assistance payments were paid.

Box 10 – Workers' compensation benefits

There are three methods of payment:

  • direct payment to a claimant
  • full-salaried employee award, when the workers' compensation board repays the awarded amount to the employer who has advanced the money to the employee in anticipation of the award
  • self-insured employee award, when the workers' compensation board determines the eligibility of the claim and the amount of the award, but full responsibility for payment rests with the employer, or with an insurance company

Direct payment to claimant – Enter in box 10 the total amount (dollars and cents) of workers' compensation benefits paid to the recipient in the year.

Full-salaried employee award and self-insured employee award – Enter in box 10 the total amount (dollars and cents) of the workers' compensation award for the calendar year. The total payment must be reported in the year in which it is paid.

Example 1

When the claim and the benefit payments occur in different calendar years – An employee is injured and files a claim in year A. The board accepts the claim and reimburses the employer in the next year (year B). In this case, the board has to file a T5007 slip for year B for the full amount of the award.

Example 2

When reimbursements of wage-loss replacement plan benefits are deductible – An employee received $5,000 as wage-loss replacement plan benefits in year A. This amount is included in income in year A. In year B, the employee receives another $5,000 in wage-loss replacement plan benefits and workers' compensation benefits of $15,000. It is later determined that he is required to reimburse $8,000 of the wage-loss replacement plan benefits. For year B, he would include both the $5,000 wage-loss replacement and the $15,000 workers' compensation benefits in his income. Assuming these are his only sources of income, his total income would be $20,000. He is entitled to an $8,000 deduction representing the reimbursement of the wage-loss replacement plan benefits as other employment expenses (repayment of salary or wages). He can also deduct the $15,000 of workers' compensation benefits which he added to his income. After deducting these amounts from net income, he has a non-capital loss of $3,000. This can be carried back 3 years and forward 20 years and deducted from income from all sources. If it is carried back to the previous tax years, the employee should send to his tax centre a completed Form T1A, Request for Loss Carryback, or a signed letter providing the details of the request.

Example 3

When an insurance company pays the immediate benefits – A worker is injured or sick and files a claim. The insurance company pays $500 to the worker, and the worker assigns workers' compensation board rights to the insurance company. The board awards $400 to the worker and pays that amount to the insurance company. The insurance company issues a T4A slip to the worker for $100, which is the amount of unrecovered benefit payments to the worker. The board should issue a T5007 slip to the worker for the full $400 benefit awarded.

Note

Employers who continue to pay an employee's salary before and after a workers' compensation board claim is decided, have to withhold amounts for income tax, Canada Pension Plan, and Employment Insurance, and report these amounts on a T4 slip, Statement of Remuneration Paid. For more information, see Guide T4001, Employers' Guide - Payroll Deductions and Remittances, and Guide RC4120, Employers' Guide – Filing the T4 Slip and Summary.

Interim assistance from a social services agency

Individuals could face financial difficulties while waiting for the workers' compensation board to accept their claims. During this waiting period, they may rely on a social services agency for financial support. In this case, they might be required to assign their rights to income receivable from the workers' compensation board to a social services agency in exchange for interim financial support. The assignment could cover the entire amount of income or part of it.

Assignment of benefits – The amount the workers' compensation board has to report in box 10 is the total workers' compensation benefits paid in the calendar year. In addition, the social services agency has to issue a T5007 slip for the amount of social assistance paid, less the workers' compensation benefits assigned to the agency.

Note

A T5007 slip should never show a negative amount.

Box 11 – Social assistance payments or provincial or territorial supplements

Enter the total amount (dollars and cents) of assistance paid to the recipient in the calendar year.

When there is a legal transfer of certain income amounts – In some circumstances, individuals can formally assign their rights to receive certain income, or a province or territory can transfer their rights to receive such income (for example, child support and alimony payments). Once an individual transfers his or her rights to support payments to a provincial or territorial authority, the province or territory then has the legal right to collect these payments. In this case, report in box 11 the total social assistance payments paid to the recipient in a calendar year, minus the money recovered through a formal assignment or transfer.

When certain income amounts are assigned to repay assistance – Individuals could face financial difficulties while waiting for certain income amounts (for example, workers' compensation benefits, employment insurance benefits, and Canada Pension Plan payments). During these waiting periods, they may rely on a social services agency for financial support. In such situations, they could sign agreements to repay any assistance they receive. In these agreements, they could assign their rights to all or part of any income amounts to the social services agency.

In such a situation, you have to issue a T5007 slip for the amount of social assistance advanced to the individual less any amounts recovered by assignments. The income that is received from the other agencies in repayment for the social assistance advances keeps its identity, and those agencies will issue the applicable information slip to the individual for whom the payments were made.

Child support payments paid under an order or agreement made or varied after April 1997 are neither included in the recipient's income nor deductible by the payer.

Box 12 – Social insurance number

Enter the individual's social insurance number (SIN). You have to make a reasonable effort to get the SIN from each recipient. If the individual does not have a SIN, he or she has to apply for one.

If you have not received the SIN by the time you prepare the T5007 slip, do not delay completing the T5007 information return beyond the required filing date. Instead, leave this box blank and file the return on time. If an individual gives you his or her SIN after you have sent the T5007 information return to us, the individual does not need to receive an amended T5007 slip with the correct SIN but a copy should be sent to us. For more information, see Chapter 9 – After you file.

For more information about SIN reporting requirements and the related penalties, see Failure to provide a social insurance number and Using the social insurance number. For more information, see Information Circular IC82-2R, Social Insurance Number Legislation that Relates to the Preparation of Information Slips or visit the Service Canada website.

Box 13 – 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 slip (for example, "AMENDED" or "CANCELLED") and include a written explanation of the reason for filing the slip. For more information, see Chapter 9 – After you file.

Recipient's name and address

Enter the last name of the recipient first, in capital letters, followed by the first name and initials. Enter the recipient's full mailing address.

Payer's name and address

Enter on each T5007 slip the complete name and address of the workers' compensation board, the social services agency, or similar body that paid the benefits or assistance, or determined an award to the recipient.

Distributing the T5007 slips

You can send recipients an electronic copy of their T5007 slips, on or before 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 T5007 slip (three slips printed per sheet), along with the T5007 Summary, on or before the last day of February following the calendar year to which the information return applies. Send these forms to:

T5007 Program
Jonquière Tax Centre
Post Office Box 1300 LCD Jonquière
Jonquière QC G7S 0L5

Send two copies of the T5007 slip to the recipient on or before 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 T5007 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 T5007 slips to the recipients and us no later than 30 days after the date the business or activity ended.

Chapter 8 – Completing the T5007 Summary

General information

Before completing the T5007 Summary, see Chapter 5 – Filing methods. We can process your T5007 information return more efficiently if you follow those instructions.

You can get a blank T5007 Summary by going to Forms and publications or order one by calling 1-800-959-5525.

Note

An address change cannot be done using the T5007 Summary. To update an address online, go to:

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

Information return for the year ending December 31

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

Account number

Enter the 15 characters of your account number. The account number consists of three parts–the business number (BN), the program identifier and the reference number.

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

Note

In order to create or maintain account numbers, you must be authorized to do so.

Amendments

If you are filing an amended slip, you must do so using the account number you indicated in the original information return.

If this is an additional T5007 Summary

Enter a “✓” to show that you are filing an additional T5007 information return.

Name and address of payer

Enter the name and complete address of the workers' compensation board, social services agency, or similar body filing this information return.

Language

Enter a “✓” to show your preferred language for correspondence.

T5007 slip totals

Box 10 – Workers' compensation benefits

Enter the total amount (dollars and cents) of workers' compensation benefits paid or awards determined. This amount corresponds to the total of all the amounts reported in box 10 of all the T5007 slips you are submitting with this T5007 Summary.

Box 11 – Social assistance payments or provincial or territorial supplements

Enter the total amount (dollars and cents) of social assistance payments or provincial or territorial supplements paid. This amount corresponds to the total of all the amounts reported in box 11 of all the T5007 slips you are submitting with this T5007 Summary.

Box 31 – Total number of T5007 slips attached

Enter the total number of T5007 slips you are submitting with this T5007 Summary.

Contact person

Print the name and telephone number of the person who will be able to answer any questions we may have about this information return.

Certification

Name of authorized person

Print the name of the officer who has signing authority.

Signature of authorized person and date

A person with signing authority has to sign and date the information return.

Position or title

Enter the position or title of the person who has signing authority.

Chapter 9 – After you file

When we receive your information return, we verify 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 T5007 slips. If so, you will have to prepare amended slips to correct the information.

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 Filing Information Returns Electronically (T4/T5 and other types of returns).

Amending or cancelling slips 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 any tax centre. Do not file an amended or cancelled T5007 Summary.

Adding slips

We also accept additional T5007 original slips in electronic format. For more information, see Chapter 5 – Filing methods or go to Filing Information Returns Electronically (T4/T5 and other types of returns).

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.

We also accept 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.

Note

Any additional T5007 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 T5007 information return or go to Filing Information Returns Electronically (T4/T5 and other types of returns).

Replacing slips

If you issue T5007 slips to replace copies that were lost or destroyed, do not send us copies of these slips. Clearly identify them as "DUPLICATE" copies and keep a copy for your records.

Chapter 10 – Recovery of benefit and assistance overpayments

The following guidelines address recoveries of overpayments of benefits or assistance made to an individual by mistake. We do not consider an amount paid in error as assistance or a benefit for the individual receiving it. Therefore, you should not include it in the individual's income for the year he or she received it. If the individual has to repay it in the same or another year, we do not allow a deduction from income for the repayments made (whether made by deduction from the individual's benefits or assistance, or in some other manner). The following guidelines apply if the individual has repaid amounts you have reported on a T5007 slip for a previous year.

Note

A T5007 slip should never show a negative amount.

Workers' compensation benefits

Self-insured employee award

You should issue an amended T5007 slip for the year the overpayment was paid, not the year the workers' compensation board discovered or recovered the overpayment.

Example

A worker receives in year A a total of $1,000 in wages, consisting of $600 in benefits and $400 in salary. A T5007 slip was issued for $600, as well as a T4 slip reporting the $400 salary and $600 (the amount of benefit reimbursed to the employer) in the "Other information" area with a code 77. This allows the employee to claim the other employment expense deduction. In the following year (year B), the board discovers that the worker should have received $550 in benefits and $450 in salary for year A. Consequently, year A benefits were overpaid by $50. You should reflect this change by issuing an amended T5007 slip for year A in the amount of $550.

To calculate the individual's refundable tax credits and benefits (for example, goods and services tax/harmonized sales tax credit, Canada child benefit, and provincial or territorial tax credits or benefits), the individual's net income stays at $1,000. The increase in salary is offset by the $50 reduction in benefits. However, you have to amend the T5007 slip because there is an increase in the individual's taxable income, equivalent to the increase in salary of $50.

For more information, see Guide T4001, Employers' Guide - Payroll Deductions and Remittances or call 1-800-959-5525.

Direct payment to claimant

Example 1

Using the previous example in which the individual only received benefits in year A, you should amend the T5007 slip for year A to report $550 in paid benefits.

Example 2

When an individual is still receiving benefits in year B, and his or her benefits for that year are reduced to recover the overpayment, or if he or she directly repays the overpayment, you should only report the net amount on the T5007 slip for year B. Once year B's benefits have been reduced to nil, you can reduce year A's benefits by any amount of the recovery that is more than year B's benefits. In this case, you should also prepare an amended T5007 slip for year A.

Note

When an identified overpayment has not been recovered, do not amend any T5007 slips.

Social assistance payments

Example 1

In year A, an individual receives $3,000 in assistance. In the following year (year B), it is discovered that the individual should have received only $2,500 in total payments. The individual is not receiving assistance in year B, but the agency recovers the overpayment of $500 in assistance in year B. In this case, you should amend the T5007 slip for year A to report $2,500 in paid assistance.

Example 2

When an individual is still receiving assistance in year B, and his or her assistance payments for that year are reduced to recover the overpayment, or he or she directly repays the overpayment, you should only report the net amount on the T5007 slip for year B. Once year B's assistance has been reduced to nil, you can reduce year A's assistance by any amount of recovery that is more than year B's assistance. In this case, you should also prepare an amended T5007 slip for year A.

Note

When an identified overpayment has not been recovered, do not amend any T5007 slips.

Distributing your copies

How to prepare, distribute and file your T5007 slips with your T5007 Summary

You can use this form whether you file your information return electronically or on paper. For more information on how to complete the T5007 slip and the T5007 Summary, see Chapter 7 – Completing the T5007 slip and Chapter 8 – Completing the T5007 Summary.

When filing electronically: Follow the instructions and technical specifications by going to 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.

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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 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.
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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.

References

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

Addresses of tax centres

Filers served by a tax services office in the following list should communicate with the corresponding tax centre or office listed beneath it.

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 OntarioFootnote 2 only), 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 BeltFootnote 1 only)

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
  • submit an enquiry about your audit

To log in to or register for CRA's online services, go to:

For more information, go to My Business Account.

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 notification to get most of your CRA mail, like your notice of assessment, online.

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

Authorizing the withdrawal of a pre-determined amount from your Canadian chequing 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. PADS are flexible and are 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.

For more information

What if you need help?

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

Direct deposit

Direct deposit is a fast, convenient 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.

Forms and publications

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

Electronic mailing lists

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

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.

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 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 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 complaints

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 complaints and disputes, go to Complaints, objections, appeals, disputes, and relief measures.

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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