When do you not have to prepare a T5008 information return?

You do not need to prepare a T5008 slip and information return for:

  • a purchase of a security by one trader or dealer in securities from another, other than a non-resident trader or dealer in securities
  • a sale of a security by a trader or dealer in securities for another trader or dealer in securities
  • a sale of currencies or precious metals in the form of jewellery, works of art, or numismatic coins
  • a sale of precious metals if you ordinarily produce or sell precious metals in bulk or commercial quantities
  • a redemption, acquisition, or cancellation of a debt obligation by the issuer or agent when:
    • the debt obligation was issued for its principal amount
    • the redemption, acquisition, or cancellation satisfies all of the issuer's obligations
    • there are no disproportionate payments of principal and interest to any person with an interest in the debt obligation
    • an information return other than a T5008 information return is required as a result of the redemption, acquisition, or cancellation
  • a sale of securities by a trader or dealer in securities on behalf of a person who is exempt from tax under section 149 (for example, municipalities, registered charities, non-profit organizations, and registered retirement savings plans)
  • transactions reported under section 202 or 204 of the Income Tax Regulations
  • a deemed disposition of a security (see Deemed dispositions)
  • the expiry or exercise of an option, right, or warrant

Example

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 slip and 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 slip and information return.

 

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