2020 T5008 Guide - Return of Securities Transactions - CCH Site ...
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T5008 Guide – Return of Securities Transactions 2020 T4091(E) Rev. 20
Is this guide for you?
This guide explains how to prepare a T5008 return of For example, transactions undertaken under section 85 and
securities transactions. Traders or dealers in securities have section 85.1 of the Income Tax Act are not exempt from the
to file a T5008 information return to report purchases of requirement to report.
securities as principal for their own account, and sales of
You must also use the T5008 information return to report
securities they make as an agent or nominee, for any
dispositions or redemptions of debt obligations in bearer
vendor. Issuers of securities and their agents or nominees
form by individuals resident in Canada. Debt obligations in
use this information return to report redemptions,
bearer form include commercial paper and banker’s
acquisitions, or cancellations of securities.
acceptances.
You have to report transactions to all persons, including
Note
individuals, corporations, partnerships, trusts, or any other
We have developed flowcharts to help you determine
person who resides either in or outside Canada.
the reporting requirements. See page 17.
You have to report all security transactions falling under
any section of the Income Tax Act not specifically excluded
under subsection 230(3) of the Income Tax Regulations,
even if no tax arises as a result of the transaction.
Our publications and personalized correspondence are available
in braille, large print, e-text, or MP3 for those who have a visual
impairment. For more information, go to canada.ca/cra-multiple
-formats or call 1-800-959-5525.
Confidentiality of information Income Tax Act references
Under the Privacy Act, the personal information you Unless otherwise stated, all legislative references are to the
provide on the T5008 information return and related forms Income Tax Act and the Income Tax Regulations.
can be used only for the purposes authorized by law.
La version française de ce guide est intitulée Guide T5008 – Déclaration des opérations sur titres.
canada.ca/taxesWhat’s new?
Internet file transfer availability
Internet filing is available from January 11, 2021.
canada.ca/taxesTable of contents
Page Page
Chapter 1 – General information ..................................... 6 Appendix A – Flowcharts ................................................... 17
What are securities? ............................................................. 6 Chart 1 – Debt obligations ................................................... 17
What are proceeds? .............................................................. 6 Debt obligations .................................................................... 18
Who has to file a T5008 information return? ................... 7 Chart 2 – Shares ..................................................................... 19
When do you not have to file a Shares ...................................................................................... 19
T5008 information return? .............................................. 7 Chart 3 – Interest in a trust or partnership ....................... 20
Deemed dispositions ........................................................... 8 Interest in a trust or partnership ........................................ 20
Are you acting as a trustee? ................................................ 8 Chart 4 – Other securities .................................................... 21
Due date ................................................................................. 8 Other securities...................................................................... 22
Chart 5 – Reporting institutions ......................................... 23
Chapter 2 – T5008 information return ............................. 8
Reporting institutions .......................................................... 23
General information ............................................................. 8
Chart 6 – Reporting the transactions ................................. 24
T5008 slip ............................................................................... 8
Reporting the transactions................................................... 25
T5008 Summary .................................................................... 8
Appendix B – Samples of forms ....................................... 26
Chapter 3 – Filing methods ............................................... 8
T5008 slip ................................................................................ 26
Mandatory electronic filing ................................................ 9
T5008 Summary ..................................................................... 27
Failure to file information returns over the Internet .. 9
Filing by Web Forms ............................................................ 9 Appendix C – Distributing your copies .......................... 28
Filing by Internet file transfer ............................................ 9 How to prepare, distribute, and file your T5008 slips
Web access code.................................................................... 9 with your T5008 Summary .............................................. 28
Filing without a web access code ...................................... 9
Appendix D – Samples of customized forms ................ 29
Filing using computer-printed (customized) forms ....... 10
Trading Summary (provide to recipient).......................... 29
Filing on paper ...................................................................... 10
Appendix E – Provincial and territorial codes ............... 31
Chapter 4 – Penalties and interest ................................... 10
Late filing and failure to file the Appendix F – References .................................................... 31
T5008 information return ................................................ 10 Information Circulars ........................................................... 31
Failure to provide information on a return...................... 10 Interpretation Bulletins ........................................................ 31
Failure to provide an identification number ................... 10 Guide ....................................................................................... 31
Failure to provide a social insurance number (SIN) on
a return ............................................................................... 10 Addresses of tax centres ..................................................... 31
Using the identification number ........................................ 10 Online services ..................................................................... 32
Interest .................................................................................... 11 Handling business taxes online .......................................... 32
Cancel or waive penalties or interest ................................ 11 CRA BizApp .......................................................................... 32
Notice of assessment ............................................................ 11 Receiving your CRA mail online ........................................ 32
Chapter 5 – T5008 slip ........................................................ 11 Authorizing the withdrawal of a pre-determined
Completing the T5008 slip .................................................. 11 amount from your Canadian chequing account .......... 32
Distributing the T5008 slips ................................................ 14 For more information .......................................................... 33
Chapter 6 – T5008 Summary ............................................. 14 What if you need help? ........................................................ 33
Completing the T5008 Summary ....................................... 14 Direct deposit......................................................................... 33
Filing the T5008 Summary .................................................. 15 Forms and publications ....................................................... 33
Tax Information Phone Service (TIPS) .............................. 33
Chapter 7 – After you file .................................................. 15 Teletypewriter (TTY) users ................................................. 33
Amending, cancelling, adding, or replacing slips .......... 15 Electronic mailing lists ......................................................... 33
Complaints and disputes ..................................................... 33
Chapter 8 – Unclaimed proceeds of disposition ........... 16
Service-related complaints .............................................. 33
Remittances ........................................................................... 16
Formal disputes (objections and appeals)..................... 33
Reporting requirements ...................................................... 16
Reprisal complaint ............................................................ 33
4 canada.ca/taxesDefinitions
These are not definitions provided by the Income Tax Act or Income Tax Regulations. They give only the common usage of
the terms for the benefit of the reader.
Agent – A person authorized to act for another. Deemed disposition – This term is used when you are
considered to have disposed of property, even though a
Amalgamation – Union of different corporations to form a
transaction did not take place. A deemed disposition occurs
single new corporation.
when the owner of a security transfers certain property to a
As principal – On your own account. See “Principal.” trust, gifts property, leaves Canada, or dies.
Banker’s acceptance – A draft payable at maturity drawn Discount – The difference between present and maturity
by a creditor against a debtor. Banker’s acceptances are value. Buying an instrument before maturity at less than
short-term credit instruments that are commonly sold at a par value.
discount.
Draft – An order to pay a sum of money on demand or at a
Bearer – The person in possession of a negotiable definite time.
instrument.
Exchange – The market place at which different securities
Bearer form – An instrument is in bearer form if its terms are bought and sold (for example, stock exchange,
say that it is payable to the bearer, or to cash, or if it does commodity exchange). It also means a transaction that
not indicate a payee. involves trading one security for another.
Bond – A security under which the issuer contracts to pay Face amount – The nominal value that appears on the face
the lender a fixed amount at a stated date in the future, and of a document, generally a bond. It is the amount to be
a series of interest payments. Some bonds are issued at a repaid at maturity.
discount instead of providing for interest payments.
Futures – A right to get, at a future date, a quantity of a
Book Value – The initial outlay or price paid by the given commodity for a fixed price.
investor for a security or debt investment. The book value
Holder – A person who possesses a security and who is
is important in helping the investor keep track of gains (or
entitled to get a payment of that security.
losses).
Index – A list of the current values of marketable securities
Call – A demand on the holder to submit securities for
given through an exchange (stock, commodities, futures
payment or redemption.
exchanges).
Cancellation of securities – An action of issuers who call
Instrument – Any negotiable written document.
back their own securities to cancel them and to reduce the
amount of outstanding securities. Market value – The current price at which an investor can
sell a security or debt investment.
Capital – All shares representing ownership, including
preferred and common shares. Nominee – A person designated to act for another.
Commercial paper – A negotiable instrument (promissory Note – An instrument in which the signer promises to pay
note, bank cheque) for the payment of money. It is to a specified person, or the bearer, a sum of money at a
commonly sold at a discount. specified time.
Commodities – Staples such as wool, cotton, or any articles Numismatic coins – Coins or coin-like objects that have a
of merchandise that are useful or serviceable. value to collectors.
Consideration – Anything received in a transaction Option – A right to buy commodities or securities within
(usually cash) including any tangible or intangible an agreed period, at a fixed price, or to sell commodities or
property. securities at an agreed price and time. An option to buy is
known as a “call” and an option to sell is called a “put.”
Contract – An agreement between persons that creates an
obligation. See “Option.” Par – When the nominal or face value of a security equals
its market value, it is trading at par. Par value may also
Creditor – A person to whom a debt is owed by another
refer to a value stated on securities, especially shares, that
person who is the debtor.
does not represent market value. The amount of the issue
Debenture – A promissory note or bond backed by a price or market value that is more than the par value is
corporation’s general credit rating. called a premium.
Debt obligation – A fixed obligation to pay money or some Partnership – Under Canadian provincial and territorial
other valuable consideration. common law statutes, a partnership is defined as the
relation (or relationship) that subsists (or exists) between
Debtor – One who owes a debt. persons carrying on a business in common with a view to
profit. Each person contributes money, property, labour, or
a skill, and each expects to share in the profits or losses of
the venture. You can have a valid partnership without a
formal written partnership agreement.
canada.ca/taxes 5The type and extent of a person’s involvement in the Chapter 1 – General information
business are important in determining whether the person
is a partner. For more details, see Income Tax To help us process your T5008 returns quickly and
Folio S4-F16-C1, What is a Partnership? accurately, we would prefer that you file over the Internet.
Moreover, this may be a requirement for you. For more
If you would like more help to determine whether an
information, see “Chapter 3 – Filing methods” on page 8.
arrangement is a partnership, you should also see the
relevant provincial or territorial laws. We will usually Use the current versions of the T5008 slip and
accept a decision based on those laws. T5008 Summary when you file your
T5008 information return.
Precious metal – This means coins, metals (especially gold
and silver) before coining, or certificates representing such This guide does not deal with every tax situation. For a list
metals. Precious metal does not include jewellery, works of of publications that explain situations in more detail,
art, or numismatic coins. see page 31.
Predecessor – This means one of any number of businesses To get our forms and publications, go to canada.ca/cra
or corporations that have been incorporated into and -forms-publications or call 1-800-959-5525.
replaced by a new business or corporation through
an amalgamation. What are securities?
Premium – Where debts are issued with a stated interest For the T5008 information return, securities mean:
rate greater than prevailing market rates, the debt issuer
will receive greater than 100% of the principal amount of ■ publicly traded shares of the capital stock of
the debt issue. a corporation
Principal – This means the capital sum of a debt or ■ publicly traded debt obligations
obligation, as distinguished from interest or other additions ■ debt obligations of, or guaranteed by:
to it. See “As principal.”
– the Government of Canada (such as Treasury bills)
Proceeds – See “What are proceeds?” on page 6 for the
definition of proceeds. – the government of a province or territory or its agents
Prospectus – A document a company publishes to invite – a municipality in Canada
the public to subscribe to an issue of shares, debentures, or
– a municipal or public body performing a function of
other securities.
government in Canada
Publicly traded – Listed or posted on any exchange
– the government of a foreign country or a political
(for example, stock exchange, commodity exchange, futures
subdivision of a foreign country, including a local
exchange). Sold or distributed under a prospectus or
authority of such a government
similar document.
■ prescribed debt obligations as described in
Redemption of securities – An action of issuers who buy
paragraph 7000(1)(d) of the Income Tax Regulations
back their own securities (frequently shares).
■ publicly traded interests in a partnership or a trust
Right – A privilege granted to the holder of a security, such
as the right to buy more shares of the issuer or the right to ■ any option or contract for any of the properties
exchange the security held for a different security. listed above
Short Sale – A short sale is a contract for the sale of ■ publicly traded options or contracts for any property
securities that the seller does not own but that will be including any commodity
delivered at a specified time.
■ publicly traded options or contracts for financial futures,
Security – See “What are securities?” on page 6 for foreign currency, or precious metal
the definition of a security.
■ publicly traded options or contracts for any index
Trader or dealer in securities – A person registered or relating to any property
licensed to trade in securities or a person who ordinarily
sells securities for others. What are proceeds?
Treasury bill – Short-term obligations of the federal Proceeds is a term used to describe the amount that arises
government. Treasury bills are usually for terms of 3, 6, as the result of a sale, disposition, deemed disposition
and 12 months. (see “Deemed dispositions” on page 8), redemption,
Underwriter – A person who acquires securities from the acquisition, or cancellation of securities, or an exchange or
issuer for the purpose of publicly distributing them. conversion of property. The term does not mean only cash
or money. For the purposes of Regulation 230, it includes
Warrant – A certificate granting the owner the right to all consideration, such as cash, debt obligations, shares, and
buy securities. so on, that is paid or payable to the transferor.
6 canada.ca/taxesWho has to file a T5008 information Tax tip
Electronic filing of information returns
return? All information returns should be filed electronically to
The following persons have to file a avoid the delays that may occur in processing paper
T5008 information return: submissions. Filing of paper returns may result
every trader or dealer in securities who buys a security as in penalties.
■
principal (for their own account) or sells a security as an The CRA offers two methods for electronically filing
agent or nominee for any vendor your information returns:
■ every person in the business of buying and selling ■ Web Forms — With each submission, you can include
precious metals in the form of certificates, bullion, or up to 100 slips.
coins who makes a payment to another person for a sale
of precious metals by that other person ■ Internet file transfer — You can submit files of up to
150 MB over the internet.
■ every person who, as a nominee or agent for another
person, gets the proceeds of a sale or other transaction Some of the benefits of electronically filing your
carried out in the name of the nominee or agent returns are:
■ every person who makes a payment to, or acts as a ■ your return will be processed without delay
nominee or agent for, an individual resident in Canada ■ you will receive a confirmation number when you file
for the disposition or redemption of a debt obligation in
bearer form ■ slips are available sooner for Auto-fill my return
■ every person (other than an individual who is not a trust) For more information about “Web Forms”, “Internet file
who acquires, redeems, or cancels a security issued by transfer”, and “penalties”, go to canada.ca/taxes-iref.
that same person, except when the transactions involve
the following: When do you not have to file a
– exchanges of shares for new shares in the course of a T5008 information return?
reorganization of the capital of a corporation You do not need to file a T5008 information return for:
(section 86), if no consideration other than the new
shares is receivable ■ a purchase of a security by one trader or dealer in
securities from another, other than a non-resident trader
– securities disposed of when a partnership ends or dealer in securities
[subsection 98(3)]
■ a sale of a security by a trader or dealer in securities for
– securities transferred when a new partnership is another trader or dealer in securities
formed from a predecessor partnership
[subsection 98(6)] ■ a sale of currencies or precious metals in the form of
jewellery, works of art, or numismatic coins
– convertible property (section 51), that is, when a
corporation’s shares, bonds, debentures, or notes are ■ a sale of precious metals if you ordinarily produce or sell
exchanged for shares of the same corporation and no precious metals in bulk or commercial quantities
consideration other than the new shares is receivable
■ a redemption, acquisition, or cancellation of a debt
– redemptions, cancellations, or acquisitions of securities obligation by the issuer or agent when:
made during an amalgamation (section 87)
– the debt obligation was issued for its principal amount
– exchange of capital property that is a convertible debt
– the redemption, acquisition, or cancellation satisfies all
obligation for another debt obligation (section 51.1)
of the issuer’s obligations
Note
– there are no disproportionate payments of principal
If cash or some other consideration totalling $200 or less
and interest to any person with an interest in the
is received instead of a fractional interest in shares
debt obligation
during an exchange to which section 51 or 87 applies,
you do not need to report the transaction. If the cash or – an information return other than a T5008 information
other consideration is more than $200, you have to return is required as a result of the redemption,
report the entire exchange transaction. For more acquisition, or cancellation
information, see Archived Interpretation
Bulletin IT-115R, Fractional Interest in Shares. ■ a sale of securities by a trader or dealer in securities on
behalf of a person who is exempt from tax under
Units in a trust that trade at a constant fixed price measured section 149 (for example, municipalities, registered
in Canadian dollars, such as money market funds, are charities, non-profit organizations, and registered
excluded from this T5008 filing requirement. The income retirement savings plans)
earned from money market funds should be reported on T3
or T5 slips as appropriate. This position does not apply to ■ transactions reported under section 202 or 204 of the
units in a U.S. dollar denominated money market fund, Income Tax Regulations
regardless of whether the units are held in a Canadian ■ a deemed disposition of a security (see “Deemed
dollar account or a U.S. dollar account. dispositions” on page 8 for more information)
canada.ca/taxes 7■ the expiry or exercise of an option, right, or warrant due date falls on a Saturday, Sunday, or public holiday
recognized by the CRA, your return is considered on time if
we receive it or if it is postmarked on or before the next
Example
business day. Note that several provinces and territories
A client of a trader or dealer in securities owns an option to
have their own unique holidays. Therefore, due dates may
buy publicly traded shares in XYZ Corporation. If the
be affected depending on where you reside. For a list of
trader or dealer buys the option from the client or sells the
public holidays, go to canada.ca/cra-due-dates.
option to a third party for the client, the trader has to
prepare a T5008 information return to reflect the You can send recipients an electronic copy of their
transaction. However, if the client exercises the option and T5008 slips. The recipient must have consented in writing
acquires the shares of XYZ Corporation, or if the option is or by email to receive the slips electronically.
allowed to expire, the trader does not have to file
a T5008 information return. Send the recipients’ copies of the T5008 slips to their last
known address or deliver them in person. You have to do
this on or before the day you have to file
Deemed dispositions the T5008 information return.
You do not have to report deemed dispositions on a
T5008 slip. Chapter 2 – T5008 information
In certain circumstances, the Income Tax Act considers that return
a property has been disposed of, even though no real
compensation in the form of money or other consideration General information
has been received.
A T5008 information return consists of T5008 slips and the
Some examples of when a deemed disposition may related T5008 Summary.
occur are:
■ transfers of property to a trust T5008 slip
■ gifts of property (that is, the name of the beneficial owner Use this slip to report one transaction (or more than one
of the property is changed) transaction involving identical securities for the same
client) you made for a person. There are three slips printed
■ the owner dies on each T5008 sheet.
■ the owner ceases to be a resident of Canada For more information on how to complete the T5008 slip,
In this guide, “sale” generally refers to a transaction where see “Completing the T5008 slip” on page 11. For a sample
the ownership of property is transferred from one person or of the slip, see page 26.
entity to another for a sum of money or other consideration.
In the case of a deemed disposition, ownership of the T5008 Summary
property is not transferred for money or other
Use this form to total all the proceeds of disposition or
consideration. In addition, a deemed disposition is not a
settlement amounts you report on the related T5008 slips.
purchase, redemption or cancellation of a security.
Consequently, a deemed disposition is not considered for You have to prepare a separate T5008 Summary when a
the purposes of Income Tax Regulation 230 and a T5008 slip beneficial owner claims previously unclaimed proceeds of
is not required. disposition for securities transactions. For more
information about unclaimed proceeds of disposition,
Are you acting as a trustee? see “Chapter 8 – Unclaimed proceeds of disposition”
on page 16.
Publicly traded interests in a trust are securities and can be
issued in the form of units or shares. The trust, as issuer of For more information on how to complete
these interests, has to report the redemption, acquisition, or the T5008 Summary, see “Completing the T5008 Summary”
cancellation of the units or shares to the beneficial owner. If on page 14. For a sample of the form, see page 27.
a trustee acts for the trust, the trustee must report these
transactions on T5008 slips. Chapter 3 – Filing methods
You have to report income realized by a trust and
distributed to its beneficiaries on a T3 slip, Statement of Internet filing is available from January 11, 2021.
Trust Income Allocations and Designations. This income is You must file information returns by Internet if you file
gained by holding an interest in the trust, and it is different more than 50 information returns (slips) for a
from the proceeds received from the disposition of calendar year.
those interests.
If you use commercial or in house-developed software to
manage your business, you can file up to 150 MB by
Due date Internet file transfer. For example, a service bureau can file
You have to file your T5008 information return (slips) on or multiple returns in one submission, provided the total
before the last day of February following the calendar submission does not exceed the 150 MB restriction.
year for which the information return applies. When a
8 canada.ca/taxesNote Filing by Internet file transfer
If your return is more than 150 MB, you can either
Internet file transfer allows you to transmit an original or
compress your return or divide it so that each
amended return with a maximum file size of 150 MB. All
submission is no more than 150 MB.
you need is a web browser to connect to the Internet and
your software will create, print, and save your electronic
Mandatory electronic filing T5008 return in XML format. For information about this
filing method, contact your software publisher or go
Failure to file information returns over the
to canada.ca/taxes-iref.
Internet
If you file more than 50 information returns (slips) for a
calendar year and you do not file the information returns
Web access code
by Internet file transfer or Web Forms, you are liable to a To file your return over the Internet using the Internet file
penalty decided as follows: transfer or Web Forms service, you will need a business
number and its associated web access code (WAC), unless
Number of you are filing through My Business Account or
information returns Penalty Represent a Client. For more information about these
(slips) by type services, see the next section, “Filing without a web access
code.” If you have misplaced or do not have a WAC, go
51 – 250 $250 to canada.ca/taxes-iref to access our web access code online
251 – 500 $500
service. If you cannot get your WAC online or would like to
change it, call the e-Services Helpdesk at 1-800-959-5525.
501 – 2,500 $1,500
2,501 or more $2,500 Filing without a web access code
To register as a business owner, go to My Business Account
Each slip is an information return, and the penalty we at canada.ca/my-cra-business-account and complete
assess is based on the number of information returns filed the following:
in an incorrect format. The penalty is calculated according
to the type of information return. For example, if you file ■ Select “CRA Register” and create a CRA user ID and
51 T5 slips and 51 T5008 slips on paper, we will assess two password or you can select “Sign-In Partner
penalties of $250, one for each type of information return. Login/Register” and use the same sign-in information
you use for other online services (e.g. online banking).
Filing by Web Forms ■ To register, you will need to provide:
Our Web Forms application is free and secure. To use it, all – your Social Insurance Number (SIN)
you need is access to the Internet. With Web Forms you
– your date of birth
can complete an information return easily, following the
step-by-step instructions. – your postal code or ZIP code
Web Forms lets you: – an amount you entered on your Income Tax and
Benefit Return (the line requested will vary). It could
■ file up to 100 slips (original, additional, amended, or
be from either the current or previous tax year
cancelled) from our website
– your business number (BN)
■ calculate all of the totals for the summary
■ A CRA security code must be entered to finalize the
■ create an electronic information return containing slips
registration process. The CRA security code can be
and a summary, which can be saved and imported at a
requested by paper mail or email.
later date
■ Return to My Business Account, to enter your CRA
■ print all your slips and your summary
security code.
■ validate data in real time
To register as a representative, this includes employees of a
After you submit your information return, you will receive business, go to Represent a Client at canada.ca/taxes
a confirmation number that will be your proof that we -representatives and complete the following:
received it.
■ Select “CRA Register” and create a CRA user ID and
To use the Web Forms application, you must have a web password or you can select “Sign-In Partner
access code. If you do not have a web access code, you can Login/Register” and use the same sign-in information
easily get one online or by calling us. For more information, you use for other online services (e.g. online banking).
see “Web access code” on this page.
■ To register, you will need to provide:
To start using this application or to get more information
– your access code from your notice of assessment
about Web Forms, go to canada.ca/taxes-iref.
– your postal code or ZIP code
canada.ca/taxes 9■ Register as the business owner (using your BN) or complete penalty structure, go to canada.ca/penalty
yourself and receive a representative identifier (RepID), -information-returns.
or create a group of representatives and receive a group
identifier (GroupID). Failure to provide information on a
Get authorization to have online access by doing one of return
the following:
Anyone who prepares an information return has to make
■ using the “Authorization request” service with a reasonable effort to get the necessary information,
Represent a Client at canada.ca/taxes including identification numbers, from the individuals,
-representatives trusts, corporations, or partnerships that will get the slips. If
you do not do this, you may be liable to a $100 penalty for
■ giving your BN, RepID, or GroupID to businesses or
each failure to comply with this requirement.
your employer so they can authorize you using the
“Authorize or manage representatives” service in My
Business Account at canada.ca/my-cra-business Failure to provide an identification
-account number
Note Individuals, trusts (see note under “Box 12 – Recipient
If the business authorizes you online in My Business identification number” on page 12), corporations, or
Account at canada.ca/my-cra-business-account, you will partnerships have to give their social insurance
have immediate online access to the business accounts. number (SIN), their trust account number, their business
Once you are registered as the business owner, or number (BN) or their account number on request to anyone
registered and authorized as a representative, an employee, who has to prepare an information slip for them. A person
or a group of employees, you will be able to file or amend or partnership that does not do so is liable to a $100 penalty
T5008 slips without a WAC. for each failure to comply with this requirement. This
penalty does not apply if the person or partnership had
applied for, but had not yet received, a SIN, a BN, or an
Filing using computer-printed account number at the time the return was filed.
(customized) forms A person or partnership that does not have an identification
For those who complete a large number of slips, we number must apply for one within 15 days of the date of an
accept certain slips other than our own. The applicable information request. After receiving the identification
information printed on the back of the recipient’s number, the person or partnership has 15 days to provide it
information slip must be provided. To ensure to the person who is preparing the information return.
accuracy, follow the guidelines for the production of
customized forms at canada.ca/cra-customized-forms or Failure to provide a social insurance
see Information Circular IC97-2R, Customized Forms.
number (SIN) on a return
Filing on paper Make sure the SIN and name you enter on the T5008 slip
for each individual recipient are correct.
If you file 1 to 50 slips, we encourage you to file over the
Internet using Internet file transfer or Web Forms. If the individual does not give you their SIN, you should be
However, you can still file up to 50 slips on paper. able to show that you made a reasonable effort to get it. For
example, if you contact a recipient by mail to ask for their
If you choose to file your return on paper, mail it to: SIN, record the date of your request and keep a copy of any
T5008 Program correspondence that relates to it. If you do not make a
Jonquière Tax Centre reasonable effort to get a SIN, you may be subject to a
Post Office Box 1300, LCD Jonquière penalty of $100 for each failure. If you cannot get a SIN
Jonquière QC G7S 0L5 from the recipient, file your information return, without the
SIN, no later than the last day of February. If you do not,
you may be subject to a penalty.
Chapter 4 – Penalties and interest
A person who does not have a SIN can apply for one at any
Service Canada Centre.
Late filing and failure to file the
T5008 information return For more information, see Information Circular IC82-2R,
Social Insurance Number Legislation That Relates to the
You have to file the T5008 information return (slips) and Preparation of Information Slips, or visit Service Canada
give the T5008 slips to the recipients on or before the last at canada.ca/en/employment-social-development.
day of February following the calendar year to which the
information return applies. When a due date falls on a
Saturday, Sunday, or public holiday recognized by the Using the identification number
CRA, your return is considered on time if we receive it or if If you have to prepare an information return, or if you are
it is postmarked on or before the next business day. an officer, employee, or agent of someone who does, you
cannot knowingly use or communicate an identification
The minimum penalty for late filing the T5008 information
number, or allow it to be communicated, without the
return is $100 and the maximum penalty is $7,500. For the
written consent of the individual, taxpayer, trust or
10 canada.ca/taxespartnership, other than as required or authorized by law or Foreign currency reporting
for the purpose for which the number was provided. Complete all T5008 slips in Canadian currency. Use the
If you use an identification number for unauthorized exchange rate that was in effect at the time of the
purposes, you may be guilty of an offence. If convicted, you transaction or an average rate that includes the
are liable to a maximum fine of $5,000 or imprisonment of transaction period.
up to 12 months, or both. Foreign currency is usually converted to Canadian funds
before it is credited to the recipient’s account. However,
Interest certain taxpayers keep foreign currency accounts and
choose to convert their account balances themselves. If you
If you fail to pay an amount, we can apply interest from the
get proceeds of disposition in a foreign currency and
day your payment was due. The interest rate we use is
deposit the amounts to your client’s foreign currency
determined every three months, based on prescribed
account without converting them to Canadian funds, you
interest rates. Interest is compounded daily. We also apply
can report in the foreign currency that applies. Identify
interest to unpaid penalties. For the prescribed interest
foreign currency amounts by entering in box 13 the
rates, go to canada.ca/taxes-interest-rates.
applicable currency code under international standard
ISO 4217.
Cancel or waive penalties or interest
The CRA administers legislation, commonly called Joint ownership
taxpayer relief provisions, that allows the CRA discretion to Complete only one T5008 slip to report a transaction, even
cancel or waive penalties or interest when taxpayers cannot if more than one person owns the securities. Include the
meet their tax obligations due to circumstances beyond names of the joint owners on lines 1 and 2 of the recipient
their control. area of the T5008 slip.
The CRA’s discretion to grant relief is limited to any period
that ended within 10 calendar years before the year in Aggregate reporting
which a request is made. You can report more than one transaction involving
For penalties, the CRA will consider your request only if it identical securities for the same client by totalling the
relates to a tax year or fiscal period ending in any of the amounts and showing them as one transaction. Examples of
10 calendar years before the year in which you make your identical securities are: units of the same mutual fund, all
request. For example, your request made in 2020 must commodity futures, or the same class of stock of the
relate to a penalty for a tax year or fiscal period ending same corporation.
in 2010 or later.
Recipient’s name and address
For interest on a balance owing for any tax year or fiscal
period, the CRA will consider only the amounts that First and second lines – Enter the individual’s last name
accrued during the 10 calendar years before the year in first, followed by the first name and initials or the legal
which you make your request. For example, your request name of the trust, corporation, organization, or institution.
made in 2020 must relate to interest that accrued in 2010 Do not enter the name of a secretary, treasurer, or anyone
or later. else with signing authority.
To make a request, fill out form RC4288, Request for Enter any other information, such as the name of a second
Taxpayer Relief – Cancel or Waive Penalties or Interest. recipient for a jointly owned security.
For more information about relief from penalties or interest In all cases, enter the recipient’s full mailing address
and how to submit your request, go to canada.ca/taxpayer as follows:
-relief.
Third, fourth, and fifth lines – Enter the recipient’s full
address, including city and province or territory (you can
Notice of assessment leave some lines blank). For the province or territory, use
We will only issue a notice of assessment for the two-letter abbreviations from the list on page 31.
the T5008 information return if we apply a penalty.
Postal code – Enter the recipient’s postal code.
Chapter 5 – T5008 slip Name and address of trader or dealer in
securities
Completing the T5008 slip Give the full name and mailing address of the person
Before completing the T5008 slips, see “Chapter 3 – Filing required to complete the information return in this area of
methods” on page 8. We can process your T5008 each T5008 slip. To determine whether or not you have to
information return more efficiently if you follow file a T5008 information return, see “Who has to file a
those instructions. T5008 information return?” on page 7.
For more information about filing requirements and on the
filing methods available, go to canada.ca/taxes-iref. Year
Enter the four digits of the calendar year in which the
transaction took place.
canada.ca/taxes 11Void The program account number consists of three parts:
If you make an error on a T5008 slip, enter a “✔ .” We will ■ the nine-digit BN number identifies the business
disregard transactions on voided T5008 slips
during processing. ■ the two-letter program identifier identifies the type of
program account
Box 10 – Report code ■ the four-digit reference number identifies each account in
Enter on each slip one of the following codes to indicate a program that a business may have
whether the slip is:
Box 13 – Foreign currency
■ “O” original
You should report all amounts in Canadian currency,
■ “A” amended (changing the financial data or unless the transaction meets the requirements explained
identification information) in “Foreign currency reporting” on page 11.
■ “C” cancelled For Canadian funds, leave this area blank.
When using code “A” or “C” enter a description at the top Enter the applicable three-character alphabetic or numeric
of the T5008 slip (that is, “AMENDED” or “CANCELLED”) currency code using international standard ISO 4217.
and include a letter of explanation when you file a copy of If possible, use the alphabetic codes, as follows:
the slip. For more details, see “Chapter 7 – After you file”
on page 15. USD – United States, dollar
JPY – Japan, yen
HKD – Hong Kong, dollar
Box 11 – Recipient type AUD – Australia, dollar
On each T5008 slip, enter one of the following codes to NZD – New Zealand, dollar
identify the person for whom the transaction was made: DKK – Denmark, krone
“1” individual (even if the SIN is not provided) GBP – United Kingdom, pound
EUR – European Union, euro
“2” joint account OTH – Other
“3” corporation When you report amounts in foreign currency, keep the
following in mind:
“4” other, for example, association, trust
(fiduciary-trustee, nominee, or estate), club, or ■ print the name of the foreign currency on the T5008 slips
partnership (for example, U.S. DOLLARS) beside the “Identification
of securities” text above the white box of box 17 for the
Box 12 – Recipient identification number recipient’s benefit
If the recipient is an individual (other than a trust), enter ■ if you file your T5008 information return on paper and
the individual’s social insurance number (SIN). When you leave box 13 blank, we will process the amounts on the
report the disposition of a jointly owned security, enter T5008 slips as Canadian dollars
only the SIN of the first individual you identified as
a recipient. ■ when completing the T5008 Summary, you only have to
enter one amount for total proceeds of disposition,
You have to make a reasonable effort to get the recipient’s whether or not you complete the T5008 slips in
SIN. If you do not, you may be liable to a $100 penalty for different currencies
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 Box 14 – Date (MMDD)
applying for one, make sure you complete and file the
return before the filing deadline. If you have not received Enter the month and day on which the transaction was
the SIN by the time you prepare the T5008 slip, leave completed (the settlement date). For example, if you
box 12 blank. completed the transaction on May 17, enter “0517.” If you
are reporting the aggregate of transactions that occurred
For more information on your obligation to provide a throughout the year, enter “1231” (December 31). Do not
valid SIN, see “Failure to provide a social insurance enter the year in this box.
number (SIN) on a return” on page 10.
Note Box 15 – Type code of securities
If you are reporting a transaction made in trust to an Indicate the type of security by entering one of the
institution for an individual (for example, a payment following codes:
made to the trustee of a self-directed RRSP), do not enter
the individual’s SIN in box 12. BON – Bonds
BO1 – A bulk transaction in bonds for which the
If the recipient is a trust, enter the trust account number. quantity cannot be determined
DOB – Debt obligations in bearer form
If the recipient is a business (sole proprietor, corporation,
DO1 – A bulk transaction in debt obligations in
or partnership), enter the recipient’s 15 character program
bearer form for which the quantity cannot
account number in this area.
be determined
12 canada.ca/taxesELN – Equity linked notes This amount may or may not reflect the investor’s ACB
FUT – Futures for the purpose of determining their gain or loss from
MET – Precious metals the disposition of the security. The investor should be
MFT – Units in a mutual fund trust or investment aware that they may have to make adjustments to the
fund trust amount indicated in box 20 at the time of determining
MSC – Miscellaneous and reporting their gain or loss from the disposition.
OPC – Option contracts
PTI – Publicly traded interest in a trust Box 21 – Proceeds of disposition or settlement
or partnership amount
RTS – Rights
SHS – Shares You have to prepare a T5008 slip for all reportable
UNT – Units (for example, a unit consisting of a bond transactions, regardless of the amount of proceeds. There is
and a warrant) no administrative limit for reporting securities transactions.
WTS – Warrants Note
These codes are the same as field 35A in the international Box 21 may contain a negative amount only if the type
standard ISO 15022. We have added certain codes and of securities in box 15 is a future (FUT) or an option
removed others to report transactions as required by the contract (OPC).
Act. However, if you use standard ISO 15022 to record Enter, in dollars and cents, the total proceeds received by or
transactions, you can use the field 35A codes and reproduce credited to the recipient in exchange for the securities. We
them without changes. define proceeds on page 6.
Box 16 – Quantity of securities For equity linked notes, report accrued interest from the
debt obligation to the time of transfer on a T5 slip
Enter the quantity of securities involved in the transaction. (see Guide T4015, T5 Guide – Return of Investment
The quantity must be in units that apply to that security Income). Do not include the accrued interest in the
(for example, for gold, give the number of ounces). proceeds of disposition amount.
Box 17 – Identification of securities Example
Enter a description of the securities in the white box (for A $10,000 Treasury bill is disposed of before it matures, and
example, Treasury bill, banker’s acceptance, shares of the bearer gets $9,500. The proceeds of disposition are
XYZ Corporation, debt obligation in bearer form). $9,500. Enter “9,500” in box 21. Since the face amount of the
Treasury bill is $10,000, you would enter “10,000” in box 19.
Box 18 – ISIN/CUSIP number
When the securities are identified by an ISIN number Report only the total proceeds in box 21. Do not deduct any
(International Securities Identification Number) or CUSIP expenses from the proceeds and do not report negative
number (Committee on Uniform Securities Identification amounts. See the related Note of box 21, above.
Procedures), enter the number in box 18.
Example
Box 19 – Face amount A $15,000 discounted bond is called before maturity. The
If the security represents indebtedness (for example, bonds bondholder gets a net credit of $10,480, as follows:
and other debt obligations), enter the nominal value, in
dollars and cents, that appears on the face of the document Principal payment $ 10,000
(that is, the amount to be repaid at maturity). Add: Accrued interest 500
Leave this box blank if the security does not have a face Gross proceeds $ 10,500
amount (for example, shares or commodities). Minus: Bank charges 20
Amount deposited to bondholder’s account $ 10,480
Box 20 – Cost or book value
Enter the cost or book value, in dollars and cents, of the Since the proceeds of disposition are $10,000, enter “10,000”
securities involved. in box 21. Do not include the accrued interest with the
Notes transaction proceeds. Report the accrued interest on
Cost or book value is the initial outlay or price paid or a T5 slip. The bank charges do not represent an amount
payable for a particular security or debt investment. The payable to the bondholder. Bondholders that are
preparer is expected to take reasonable measures in individuals can deduct this amount as outlays and
order to ensure that the amount reported in box 20 is expenses on Schedule 3 of their Income Tax and Benefit
correct. Do not enter the market value or the current Return to determine the gain realized on the transaction.
price the asset was sold for in box 20. The investor needs
this amount to calculate the adjusted cost base (ACB) of
the security or debt investment and to track gains
Boxes 22, 23, and 24 – Securities received on
(or losses). settlement (if applicable)
In some securities transactions, securities are received as
proceeds of disposition. This usually happens in exchange
canada.ca/taxes 13or conversion transactions. You should complete boxes 22, year to which the information return applies. Send these
23, and 24 only when you cannot readily determine the forms to:
value of the securities received on settlement. Do not report
T5008 Program
any monetary values in these boxes.
Jonquière Tax Centre
Report, in box 21, any part of the proceeds that is credited Post Office Box 1300, LCD Jonquière
in money. Jonquière QC G7S 0L5
Note Send two copies of the T5008 slip to the recipient on or
Some exchanges of securities are exempt from the before the last day of February following the calendar year
reporting requirement. For more information, see “Who to which the information return applies.
has to file a T5008 information return?” on page 7.
You do not have to keep a copy of the T5008 slips.
Certain securities can be redeemed in return for another However, you have to keep the information from which
type of security. For example, bonds may be redeemed for you prepared the slips in an accessible and readable format.
gold. However, gold is often converted, at the fair market
value (FMV), and the proceeds (see definition on page 6) Note
are credited to the recipient. In this case, you have to report When a business or activity ends, you have to send the
these transactions in box 21. appropriate copies of the T5008 slips to the recipients
and us no later than 30 days after the date the business
Use boxes 22, 23, and 24 to report the transaction only if or activity ended.
you cannot reasonably determine the FMV of the securities
obtained on conversion.
Chapter 6 – T5008 Summary
The instructions for completing boxes 22, 23, and 24 are the
same as those for boxes 15, 16, and 17. You have to complete a T5008 Summary if you prepare one
or more T5008 slips.
Example Note
XYZ Corporation redeems a bond for 20 ounces of gold. If An address change cannot be done using the T5008
you could not determine the value of the gold, you would Summary. To update an address online, go to:
complete boxes 22, 23, and 24 as follows:
■ My Business Account at canada.ca/my-cra-business
Box 22 MET -account, if you are the business owner, or
Box 23 20 OZ ■ Represent a Client at canada.ca/taxes
-representatives, if you are an authorized
Box 24 GOLD
representative or employee
Report sections 85 and 85.1 transactions in these boxes as If you are not yet registered for the CRA’s online services,
follows: you must change your address by contacting your tax
centre. The addresses of our tax centres are listed
Box 21 Leave this box blank for these transactions. on page 31.
Box 22 Enter “SHS.”
Completing the T5008 Summary
Box 23 Enter the number of shares, units, or quantity of
any other property or securities received as part Before you complete the T5008 Summary, see “Chapter 3 –
of the proceeds of disposition. Filing methods” on page 8. We can process your
T5008 information return more efficiently if you follow
Box 24 Enter “Section 85” or “Section 85.1,” as applicable. those instructions.
Do not include amounts on the T5008 Summary for which
Distributing the T5008 slips you have not prepared a T5008 slip.
You can send recipients an electronic copy of their
T5008 slips, on or before the last day of February Information return for the year ended
following the calendar year to which the information December 31
return applies, but they must have consented in writing or
by email to receive the slips electronically. Enter the four digits of the calendar year to which the
information return relates.
Note
If you file your information return over the Internet or Account number
on electronic media, do not send us the paper copy of
the forms that make up the return. Enter the 15 characters of your account number in this area.
The account number consists of three parts:
If you are filing on paper, send us each T5008 slip (three
slips printed per sheet), along with the T5008 Summary, on ■ the nine-digit BN identifies the business
or before the last day of February following the calendar ■ the two-letter program identifier identifies the type of BN
program account, in this case, “RZ”
14 canada.ca/taxes■ the four-digit reference number identifies each program Filing the T5008 Summary
account a business may have
You can file the T5008 Summary by Internet file transfer or
Please note, in order to create or maintain account numbers, electronic media. For more information, see “Chapter 3 –
you must be authorized to do so. Filing methods” on page 8.
If you filed on paper, send the completed T5008 Summary,
Additional T5008 Summary along with the related T5008 slips to:
If this is an additional T5008 Summary, enter a “✔ ” in the
T5008 Program
box provided.
Jonquière Tax Centre
You have to file an additional T5008 Summary if you file Post Office Box 1300, LCD Jonquière
additional T5008 slips. Include only original T5008 slips Jonquière QC G7S 0L5
with report code “O.” For more information,
You must send these on or before the last day of February
see “Chapter 7 – After you file” on this page.
following the calendar year to which the T5008 information
return relates.
Name and address of trader or dealer filing
this T5008 Summary When a business or activity ends, you have to send the
T5008 Summary and the related slips no later than 30 days
Enter the name and the full mailing address of the person after the date the business or activity ended.
required to complete the information return. To determine
whether or not you have to file a T5008 information return, You may want to keep a working copy of the
see “Who has to file a T5008 information return?” T5008 Summary for your records.
on page 7.
Chapter 7 – After you file
Language
Enter a “✔ ” in the appropriate box. Any future When we receive your information return, we check it to
correspondence and information we send you will be in the see if you have prepared it correctly. After an initial review,
language you choose. we enter your return into our processing system, which
captures the information and performs various validity and
Box 21 – Total proceeds of disposition or balancing checks. If there are any problems, we may
contact you.
settlement amount
Enter the total proceeds of disposition from box 21 of all
the T5008 slips you are filing with this T5008 Summary.
Amending, cancelling, adding, or
replacing slips
Box 40 – Number of T5008 slips you have filed After filing your information return, you may notice an
Enter the total number of T5008 slips you are filing with error on the T5008 slips. If so, you will have to prepare
this T5008 Summary. Do not include in this total any amended slips to correct the information.
T5008 slips you marked “VOID” or left blank.
Amending or cancelling slips over the
Is this T5008 Summary for unclaimed Internet
proceeds of disposition account? To amend a slip over the Internet, change only the
Enter a “✔ ” in the “Yes” box if this is a separate information that is incorrect and retain all of the remaining
T5008 Summary to report a payment of previously information that was originally submitted. Use summary
unclaimed proceeds of disposition. If not, enter a “✔ ” in report type code “A” and slip report type code “A.”
the “No” box. For more information, see “Chapter 8 – To cancel a slip, do not change any information that was
Unclaimed proceeds of disposition” on page 16. contained on the original slip. Use summary report type
code “A” and slip report type code “C.”
Box 41 – Contact person
For more information about amending or cancelling
Enter the name of a person who can answer any questions information returns using the Internet, go to canada.ca
we may have about this T5008 information return. /taxes-iref.
Box 42 – Telephone number Amending or cancelling slips on paper
Enter the telephone number of the contact person. Clearly identify the new slips as amended or cancelled by
writing “AMENDED” or “CANCELLED” at the top of each
Certification slip. Make sure you fill in all the necessary boxes, including
A person with signing authority has to sign and date the the information that was correct on the original slip. Send
information return in this area of the T5008 Summary. two copies of the slips to the recipient.
Send one copy of the amended or cancelled slips with a
letter explaining the reason for the amendment or
cancellation to your tax centre. The addresses of our tax
canada.ca/taxes 15You can also read
