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:

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 more information, see Interpretation Bulletin IT448 (Archived), Dispositions – Changes in terms of securities.

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

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

Forms and publications

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