Fillable Form T5

What is the T5 Form?

The T5 Form, also known as the Statement of Investment Income, is a document used in Canada for reporting investment income to the Canadian Revenue Agency (CRA). This form is required for individuals, corporations, and trusts that have received investment income during the tax year. The investment income reported on the T5 Form can include dividends, interest, capital gains, and other types of investment income.

To complete the T5 Form, you will need to have certain information at hand, including the names and addresses of the payers of the investment income, the type of investment income received, the amounts received, and any applicable taxes paid. The form also requires you to report the social insurance number (SIN) of the recipient of the investment income and the tax year for which the form is being filed.

How do I fill out the T5 Form?

The T5 form is made up of three slips that must be filled up with identical information. The information the form asks for includes the names and addresses of the recipient and payer, as well as details on the taxable dividends being declared.

Extra information on the T5 form can be found through the T4015, T5 Guide - Return of Investment Income, as well as on the second page of the form.

Step 1: Year

Enter the tax year that the T5 form is being filed for.

Step 2: Actual Amount of Eligible Dividends

Enter the actual amount of eligible dividends.

Step 3: Taxable Amount of Eligible Dividends

Enter the total amount of eligible dividends that are taxable.

Step 4: Dividend Tax Credit for Eligible Dividends

Enter the amount of dividend tax credit that can be claimed for eligible dividends.

Step 5: Interest from Canadian Sources

Enter the amount of interest that came from Canadian sources.

Step 6: Capital Gains Dividends

Enter the amount of dividends earned for capital gains.

Step 7: Actual Amount of Dividends other than Eligible Dividends

Enter the total amount of dividends, excluding eligible dividends.

Step 8: Taxable Amount of Dividends other than Eligible Dividends

Enter the total amount of dividends (excluding eligible dividends) that are taxable.

Step 9: Dividend Tax Credit for Dividends other than Eligible Dividends

Enter the amount of dividend tax credit that can be claimed for dividends, excluding eligible dividends.

Step 10: Report Code

Enter the relevant report code. See page 2 of the form for more details on the report code to be entered here.

Step 11: Recipient Identification Number

Enter the identification number of the recipient.

Step 12: Recipient Type

Enter the type of recipient.

Step 13: Other Information

Enter any relevant information codes in the Box labeled “Box - Case”, and then enter the corresponding taxable amount in the box labeled “Amount - Montant”. Check the T5 guide document for more details on the information codes that may be entered here.

Step 14: Recipient’s Name and Address

Enter the recipient’s full legal name and primary address.

Step 15: Payer’s Name and Address

Enter the payer’s full legal name and primary address.

Step 16: Currency and Identification Codes

Enter the relevant codes in the boxes labeled “Foreign Currency”, “Transit”, and “Recipient Account Number”. For more information on what codes to enter and in what situations, consult page 2 of the T5 form and the T5 guide document.

Frequently Asked Questions (FAQs)

What are dividends?

Dividends refer to the amount of money paid by a company to its shareholders or investors out of its profits or reserves. Eligible Dividends are dividends paid to a resident of Canada by a Canadian corporation that are designated by that corporation to be an eligible dividend.

How often are dividends paid?

It depends on the company, but the most common schedule for paying dividends is on a quarterly basis.

What do the numbers next to the boxes mean?

The numbers next to the boxes correspond with information on page 2 of the T5 form that indicates where each of the amounts associated with those boxes should be entered on a person’s personal tax return.

When do I need to file the T5 Form?

The T5 Form must be filed annually by the last day of February following the tax year in which the investment income was received.

When do I NOT need to file the T5 Form?

You do not have to prepare a T5 slip to report:

• Amounts paid to one recipient when the total amount for the year is less than $50
• The interest part of a blended payment made by an individual
• Interest one individual pays to another, such as interest paid on a private mortgage
• Interest paid on loans from banks, financial houses, or other institutions whose usual business includes lending money
• Capital dividends
• Interest on an investment contract accrued or payable during the year to a corporation, partnership, unit trust, or any trust of which a corporation or partnership is a beneficiary
• An amount distributed from an eligible funeral arrangement, if the amount is a return of contributions only
• Interest paid to farmers under the AgriStability and AgriInvest programs, Fund 2

What happens if I am late or do not submit a T5 Form?

The CRA will impose penalties for late and incomplete or absent T5 Forms, ranging from $100 to $7,500 depending on how late the form is.

Can I ask for assistance in filing my T5 Form?

Yes, it is perfectly legal to hire tax professionals or seek other assistance when filing forms like the T5 slips.

When do I have to file a T5 form?

If you make certain types of payments to a resident of Canada, or if you receive certain types of payments as a nominee or agent for a person resident in Canada, you have to prepare a T5 slip. See the Canada T5 guide for more details on what kinds of payments require a person to file a T5 form.

Can I file a T5 form electronically?

Yes, the T5 form can be filed both online and on paper.

What is the difference between Eligible Dividends and Non-eligible Dividends?

Eligible dividends are typically paid out by public corporations, from income that has been taxed at a higher corporate tax rate. Non-eligible dividends are generally paid out by private corporations from income that has been taxed at a lower corporate tax rate.

What happens if there are errors in the information put in the T5 form?

The CRA will contact you in the event that they find any errors in the form you send them and ask you to correct said errors in a timely fashion. Depending on the degree of the error, a penalty may be imposed.

How do I correct errors on or cancel a T5 form that was submitted electronically?

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." To cancel a slip, do not change any information that was contained on the original slip. Use summary report type code "A" and slip report type code "C."

How do I correct errors on or cancel a T5 form that was submitted on paper?

If you chose to file your amended return on paper, clearly identify the new slips as amended or canceled by writing "AMENDED" or "CANCELED" at the top of each slip. 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 or canceled slips with a letter explaining the reason for the amendment or cancellation to your tax center. Do not file an amended or canceled Summary.

What do I do if I need to submit more than three T5 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 your tax center.

What do I do if the recipient of the T5 slip does not give me their SIN?

First, you must provide proof that you exerted reasonable effort to get the recipient’s SIN. Then file your information return, without the SIN, no later than the last day of February following the calendar year to which the information return applies.

Where can I get an SIN?

A person who does not have a SIN can apply for one at any Service Canada Centre.