You received a T1204 or T5018 slip
What is the T1204?
The T1204, Government Services Contract Payments, is an information slip that identifies the total contract payments a federal department or agency, or Crown corporation, made during a calendar year for services and/or payments for products, expenses, or reimbursements. The amount shown on the T1204 does not include GST/HST or the provincial/territorial tax.
The payer is not required to, but may provide you with a copy of the slip. The payer sends us a copy.
Information you gave to the payer
In accordance with the Income Tax Act, all unincorporated entities must provide their social insurance number (SIN) or business number (BN). It will not appear on contracts and remains secure in the records of the government department, agency, or Crown corporation.
In accordance with the Income Tax Act, all incorporated entities must provide their BN. A business can have a number of BNs for reporting income tax, Goods and services tax (GST) and payroll. For contract payment reporting, you gave the payer the business number that you use when filing your own tax return.
What should you do with the T1204?
As the amount(s) shown on the T1204 slip are gross business, professional, or corporate income, and may represent a combination of payments, you should complete the applicable tax return to determine the amount of taxable income to report on your return.
Will you receive more than one T1204?
Generally, you will receive separate slips from each department, agency, and Crown corporation that made contract payments to you. However, you may receive more than one slip from large departments, agencies, or Crown corporations, particularly those with decentralized operations across the country.
What is the T5018?
The T5018, Statement of Contract Payments is an information slip that is used to report the total contract payments made to you by a contractor in a calendar year or fiscal period. The amount shown may include goods and services tax/harmonized services tax and provincial/territorial sales tax, where applicable.
The payer is not required to, but may provide you with a copy of the T5018. The payer must give the Canada Revenue Agency (CRA) a copy.
Information you gave to the payer
As a construction subcontractor, you must provide your 15-character business number (BN) or your 9-digit social insurance number (SIN) when asked by the contractor for whom you provided the services. Failure to do so may result in a penalty.
In accordance with the Income Tax Act, all unincorporated entities must provide their BN or SIN.
In accordance with the Income Tax Act, all incorporated entities must provide their BN. For contract payment reporting, you gave the payer the business number that you use when filing your own tax return.
How do you report an amount from the T5018?
Box 22 of the T5018 shows the total amount of payments made by a contractor in their selected reporting period.
For unincorporated entities, the income should be reported on Form T2125, Statement of Business or Professional Activities, as revenue on line A. This amount is then reported on line 162 on your Income Tax and Benefit Return. Since the contractor’s fiscal period may differ from the calendar year period which unincorporated entities must use, reconciliation may be required.
For incorporated entities, since the contractor’s fiscal period may differ from the fiscal year-end that your corporation uses, reconciliation may be required. For information about reporting by corporations, go to Corporation income tax return.
If you receive an information slip and you believe that the amount is significantly different from what you received, please contact the issuer of the slip.
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