T5 Statement of Investment Income

Obligations

Corporations that pay investment income, such as interest and dividends, to investors, certain debtors, or shareholders are required to provide T5 slips to the recipients of the investment income. They are also required to file a T5 Summary with the CRA to report the payment of these investment incomes.

There is no requirement to issue T5 slips to recipients for amounts under $50, although the recipients are still required to include those amounts in their personal tax returns.

If you don’t receive a T5 slip from the corporation, you should contact the corporation and request the missing slip. If you still haven’t received the slip by the time you file your personal tax return, you should make an estimate of the amount to avoid penalties for failure to include that amount.

Deadlines & Penalties

Corporations

The T5 Summary and slips must be filed on or before February 28 of the year following the payment of the investment income.

The penalty for late filing is $100 plus $10-75 per day (maximum penalty of $1,000 – $7,500), depending on how many slips are filed late.

Recipients

All T5 slips must be reported in your personal tax return by April 30 following the year in which you received the investment income.

A failure to report an amount of $500 or more will result in failure to file penalty if you also failed to report an amount of $500 or more in any of the three preceding years.

The penalties are the lesser of:

  • 10 per cent of the amount you failed to report
  • 50 per cent of the difference between the understated tax owing and the amount of tax withheld

You may also be charged an additional penalty by the CRA if you have forgotten to include a T5 slip for the second time in a four-year period.

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