When do you have to prepare a T5 slip?

If you make certain payments to a resident of Canada, or if you receive certain 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:
    • 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
  • royalties from the use of a work, an invention, or a right to take 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 more information, see Interpretation Bulletin IT448, Dispositions - Changes in terms of securities, and its Special Release at Interpretation Bulletin IT448SR, Dispositions - Changes in terms of securities.

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

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