Client Questions
I received a T5 that includes income on shares that I received from a U.S. spin-off company. Why is the value being reported?
In 2001, CRA introduced legislations that would allow Canadian recipients of U.S. "spin-off" shares to defer reporting income from these distributions. This in no way alters the responsibility of ScotiaMcLeod or ScotiaMcLeod Direct Investing to report this income as a dividend in kind of the T5 receipt. However, in your return you may be able to elect to have the distributions deferred from the current tax-reporting year if the U.S.S issuer satisfies certain criteria for CRA within six months of the U.S. spin-off distribution.
I received a T3 that includes a distribution paid in 2008. Why is this income being reported in 2007?
Many trust unit companies include payments made at the beginning of each year in their corporate year-end reporting. Therefore, income earned by the trust unit owner must be reported in the same taxation year as reported by the company.
I just received a T3 for trust income, but I’ve already filed my tax return. What must I do now?
You must file a T1-ADJ form to amend your tax return, if you receive any tax form after you have filed.
Note: Changes to T3’s as a result of revisions received by the issuer are not uncommon please do not file your return before receiving all required tax slips.
Where do I report the information on my Summary of Investment and Expense?
This document provides details on the dividend and interest revenue reported on your T5 tax slip. It also provides details of interest expense that you may have incurred. ScotiaMcLeod provides this summary for your information only, and it does not have to be included with your tax return.
Similarly, a T3 Summary of Investment Income details the distributions reported on your T3 tax slip, and is for information purposes only. All income reported as Return of Capital reduces the Adjusted Cost Base of the unit and non-cash capital gains increases ACB of the unit.
Why don't all my tax slips arrive at the same time?
The date by which the information on each slip is received from the issuer, and must be reported varies. For example, T5/ Relevé 3 slips must be mailed by February 29th, while T3/Releve 16 slips must be mailed by March 31st.
We strongly suggest that clients holding trust units wait until they have received both their T5 and T3 slips before filing their tax return.
Why aren't distributions from trust units and mutual funds on my T5?
Trust unit and Mutual fund distributions are reported on T3/Releve 16 for Quebec Residents. ScotiaMcLeod will report all Trust Unit distributions and Mutual Funds are reported directly by the Fund Company.
Why isn't Coupon interest included in my T5 with regular interest from bonds?
Coupons, like Treasury Bills, are discount instruments - they are purchased at a discounted amount and mature at par. At any point between then, the coupons worth will vary. Bonds, on the other hand, pay a regular amount of interest twice a year at the stated rate. T5's are not issued for discount instruments but as a taxpayer you are responsible for calculating and reporting the amount earned each year.
Why does the amount on my T5 not match the amount on my monthly statement?
The different figures that make up the total on the T5 are not the same ones that are included in the statement amount. For example, accrued interest on trades and compound bonds are included in the T5 but are not tracked on the monthly statement.
Why does the amount on my T5013 not match the amount I received from my Limited Partnership?
Your T5013 must reflect an amount for the full year as if you had been a full partner for that year. However, if you only owned it for part of the year your actual payment received will be less. The difference is usually reflected in the price paid for the Limited Partnership.
Why are my tax slips issued from Scotia Capital Inc. instead of ScotiaMcLeod or ScotiaMcLeod Direct Investing?
ScotiaMcLeod and ScotiaMcLeod Direct are divisions of Scotia Capital. Tax receipts are issued for these divisions by Scotia Capital Inc.
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