A T5 is a Statement of Investment Income issued by organizations which pay interest, dividends or royalties and which record how much investment income was earned for a given tax year.
Now while that generally sounds very straightforward, here’s a few interesting facts about filing your taxes generally and one of these T5’s specifically. For example, did you know while organizations don’t usually provide tax slips for interest and investment income under $50, you still need to report any income of this type on your tax return?
Missing one of these tax slips is generally no problem. The total of investment income and any related credits can be calculated as closely as possible and a note can be included to the CRA with the name and address of the organization included. However, filing without this tax slip twice in one four year period can get you penalized.
It’s also suggested that when these slips are filed electronically, you keep the T5 slips in a safe dry place for at least six years in case there’s a need for the CRA to see them. Finally, there are options and we can get the proper form to amend your tax return when there’s a late or amended T5 slip that needs to be included with the current year’s return.