A Canadian T5 tax slip, or Statement of Investment Income, is prepared and issued by organizations that pay interest, dividends, or royalties to tell you and the Canada Revenue Agency (CRA) how much investment income you earned for a given tax year. Income included on T5 tax slips includes most dividends, royalties, and interest from bank accounts, accounts with investment dealers or brokers, insurance policies, annuities, and bonds.
Organizations do not usually issue T5 slips for earned interest and investment income less than $50 CAN, although you should still report that income when you file your Canadian income tax return.
Deadline for T5 Tax Slips
T5 tax slips must be issued by the last day of February, in the year after the calendar year to which the T5 tax slips apply.
Filing T5 Tax Slips With Your Income Tax Return
When you file a paper income tax return, include copies of each of the T5 tax slips you receive. If you file your income tax return using NETFILE or EFILE, keep copies of your T5 tax slips with your records for six years in case the CRA asks to see them.
Missing T5 Tax Slips
If an organization doesn't issue a T5 even though you have investment income over the $50 CAN threshold, you are required to ask for a copy of a missing T5 tax slip.
If you haven't received a T5 slip despite requesting one, file your income tax return by the tax deadline anyway to avoid penalties for filing your income taxes late. Calculate the investment income and any related tax credits you can claim as closely as you can using any information you have. Include a note with the organization's name and address, the type and amount of investment income, and what you have done to get a copy of the missing T5 slip. Include copies of any statements you used in calculating the income for the missing T5 tax slip.
Implications of Not Filing a T5
The CRA will charge a penalty if you file an income tax return and forget to include a tax slip for the second time within a four-year period. It will also charge interest on the balance due, calculated from the tax deadline of the year to which the slip applied.
If you have filed your tax return and you receive a late or amended T5 slip, file an adjustment request (T1-ADJ) immediately to report this discrepancy in income.
Other Tax Information Slips
The T5 slip doesn't include other income sources that must be reported, even if they deal with seemingly similar investment-related sources. Other tax information slips include:
- T4: Statement of Remuneration Paid
- T4A: Statement of Pension, Retirement, Annuity, and Other Income
- T4A(OAS): Statement of Old Age Security
- T4A(P): Statement of Canada Pension Plan Benefits
- T4E: Statement of Employment Insurance and Other Benefits
- T4RIF: Statement of Income From a Registered Retirement Income Fund
- T4RSP: Statement of RRSP Income