T5008 slip

A client of a trader or dealer in securities owns an option to buy publicly traded shares in XYZ Corporation. If the trader or dealer buys the option from the client or sells the option to a third party for the client, the trader has to prepare a T5008 information return to reflect the transaction. However, if the client exercises the option and acquires the shares of XYZ Corporation, or if the option is allowed to expire, the trader does not have to file a T5008 information return.

Enter the four digits of the calendar year in which the transaction took place.

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 T5008 slip ("AMENDED" or "CANCELLED") and include a letter of explanation when you file a copy of the slip with us. For more information, see Amending, cancelling, adding, or replacing T5008 slips.

On each T5008 slip, enter one of the following codes to identify the person for whom the transaction was made:

"1" individual (even if the SIN is not provided)

"2" joint account

"3" corporation

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

If the recipient is an individual (other than a trust), enter the individual's social insurance number (SIN). When you report the disposition of a jointly owned security, enter only the SIN of the first individual you identified as a recipient.

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 they do not have a SIN but is applying for one, make sure you complete and file the return before the filing deadline. If you have not received the SIN by the time you prepare the T5008 slip, leave box 12 blank.

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

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

If the recipient is a business (sole proprietor, corporation or partnership), 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

You should report all amounts in Canadian currency, unless the transaction meets the requirements explained in Foreign currency reporting.

For Canadian funds, leave this area blank.

Enter the applicable three-character alphabetic or numeric currency code using International Standard ISO 4217. If possible, use the alphabetic codes, as follows:

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

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

• print the name of the foreign currency on the T5008 slips (for example, U.S. DOLLARS) beside the Identification of securities text above the white box of Box 17 – Identification of securities for the recipient's benefit
• if you file your T5008 information return on paper and leave box 13 blank, we will process the amounts on the T5008 slips as Canadian dollars
• when completing the summary, you only have to enter one amount for total proceeds of disposition, whether or not you complete the T5008 slips in different currencies

Complete all T5008 slips in Canadian currency. Use the exchange rate that was in effect at the time of the transaction or an average rate that includes the transaction period.

Foreign currency reporting

Complete all T5008 slips in Canadian currency. Use the exchange rate that was in effect at the time of the transaction or an average rate that includes the transaction period.

Foreign currency is usually converted to Canadian funds before it is credited to the recipient's account. However, certain taxpayers keep foreign currency accounts and choose to convert their account balances themselves. If you get proceeds of disposition in a foreign currency and deposit the amounts to your client's foreign currency account without converting them to Canadian funds, you can report in the foreign currency that applies. Identify foreign currency amounts by entering in box 13 the applicable currency code under international standard ISO 4217.

Enter the month and day on which the transaction was completed (the settlement date). For example, if you completed the transaction on May 17, enter "0517." If you are reporting the aggregate of transactions that occurred throughout the year, enter "1231" (December 31). Do not enter the year in this box.

Indicate the type of security by entering one of the following codes:

BON – Bonds
BO1 – A bulk transaction in bonds for which the quantity cannot be determined
DOB – Debt obligations in bearer form
DO1 – A bulk transaction in debt obligations in bearer form for which the quantity cannot be determined
ELN – Equity linked notes
FUT – Futures
MET – Precious metals
MFT – Units in a mutual fund trust or investment fund trust
MSC – Miscellaneous
OPC – Option contracts
PTI – Publicly traded interest in a trust or partnership
RTS – Rights
SHS – Shares
UNT – Units (for example, a unit consisting of a bond and a warrant)
WTS – Warrants

These codes are the same as field 35A in the International Standard ISO 15022. We have added certain codes and removed others to report transactions as required by the Act. However, if you use this standard ISO 15022 to record transactions, you can use the field 35A codes and reproduce them without changes.

Enter the quantity of securities involved in the transaction. The quantity must be in units that apply to that security (for example, for gold, give the number of ounces).

Enter a description of the securities in the white box (for example, Treasury bill, banker's acceptance, shares of XYZ Corporation, debt obligation in bearer form).

When the securities are identified by an ISIN number (International Securities Identification Number) or CUSIP number (Committee on Uniform Securities Identification Procedures), enter the number in box 18.

If the security represents indebtedness (for example, bonds and other debt obligations), enter the nominal value, in dollars and cents, that appears on the face of the document (that is, the amount to be repaid at maturity). Leave this box blank if the security does not have a face amount (for example, shares or commodities).

Enter the cost or book value, in dollars and cents, of the securities involved.

You have to prepare a T5008 slip for all reportable transactions, regardless of the amount of proceeds. There is no administrative limit for reporting securities transactions.

Enter, in dollars and cents, the total proceeds received by or credited to the recipient in exchange for the securities. See Proceeds for our definition of proceeds.

For equity linked notes, report accrued interest from the debt obligation to the time of transfer on a T5 slip (see Guide T4015, T5 Guide – Return of Investment Income). Do not include the accrued interest in the proceeds of disposition amount.

In some securities transactions, securities are received as proceeds of disposition. This usually happens in exchange or conversion transactions. You should complete boxes 22, 23, and 24 only when you cannot readily determine the value of the securities received on settlement. Do not report any monetary values in these boxes.

Report, in Box 21 – Proceeds of disposition or settlement amount, any part of the proceeds that is credited in money.

Certain securities can be redeemed in return for another type of security. For example, bonds may be redeemed for gold. However, gold is often converted, at the fair market value (FMV), and the proceeds (see Proceeds) are credited to the recipient. In this case, you have to report these transactions in Box 21 – Proceeds of disposition or settlement amount.

Use boxes 22, 23, and 24 to report the transaction only if you cannot reasonably determine the FMV of the securities obtained on conversion.

The instructions for completing boxes 22, 23, and 24 are the same as those for boxes 15, 16, and 17.

First and second lines

Enter the individual's last name first, followed by the first name and initials or the legal name of the trust,  corporation, organization, or institution. Do not enter the name of a secretary, treasurer, or anyone else with signing authority.

Enter any other information, such as the name of a second recipient for a jointly owned security.

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 and province or territory (you can leave some lines blank). For the province or territory use the two letter abbreviations from the Provincial and territorial codes list.

Postal code

Enter the recipient's postal code.

Give the full name and mailing address of the person required to complete the information return in this area of each T5008 slip. To determine whether or not to file a T5008 information return, see Who has to file a T5008 information return.

If you make an error on a T5008 slip, enter a “✔.” We will disregard transactions on voided T5008 slips during processing.

After filing your information return, you may notice an error on the T5008 slips. If so, you will have to prepare amended slips to correct the information.

Amending 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.”

For more information about amending information returns using the Internet, go to Filing Information Returns Electronically.

Amending slips on paper

If you chose to file your amended return on paper, clearly identify the new slips as amended by writing “AMENDED” 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 slips with a letter explaining the reason for the amendment to your tax centre. Do not file an amended T5008 Summary.

A cancelled slip is considered to be the same as an amended slip.

Cancelling slips over the Internet

To cancel a slip over the Internet, 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 cancelling information returns using the Internet, see Filing Information Returns Electronically.

Cancelling slips on paper

If you chose to file your cancellation on paper, clearly identify the new slips as cancelled by writing “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 cancelled slips with a letter explaining the reason for the cancellation to your tax centre. Do not file a cancelled T5008 summary.

After you file your information return, you may discover that you need to send the CRA 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 any tax centre.

The CRA also accept additional T5008 original slips in electronic format. For more information, see Filing methods.

If you issue T5008 slips to replace copies that were lost or destroyed, do not send the CRA copies of these slips. Clearly identify them as “DUPLICATE” copies and keep a copy for your records.