Tax Reporting Companion

When will I receive my tax slips for my tax return?

Tax slips are being produced and amended up to March 31^st. Whether your delivery preference is set to electronic or paper, we recommend waiting until after the deadline to ensure you have received all your slips.

All slips are available for download in the PWL Wealth Centre on or before the dates indicated in the table below, with the exception of T5 / RL-3 slips for HISA and Money Market Funds which are prepared by third parties and delivered by mail only.

To help you complete your income tax return, below is an overview of the most common Canadian tax slips for PWL clients. Given the complexity of the Canadian tax system, we recommend that you consult your independent tax advisor regarding your personal situation and/or consult the applicable Canada Revenue Agency (CRA), Revenu Quebec, and Internal Revenue Service (IRS) regulation and publications for more detailed information.

PWL Reports

Tax Slip Checklist
To help you anticipate what tax documents you will receive, PWL will provide you with a personalized Tax Slip Checklist by early March. Please note that checklists are only issued for clients expecting multiple slips.

Management Fee Receipts
This receipt provides the total amount of fees paid in your non-registered accounts converted into Canadian dollars. PWL management fees on your non-registered accounts are deductible on your personal tax return and should be input on “Line 22100 – Carrying charges and interest expenses”.

Realized Gain/Loss Report
If you receive a T5008/RL- 18 (Statement of Securities Transactions), you also receive a PWL Realized Gains & Losses Report to accurately determine your capital gains and losses for the year. The T5008/RL – 18 slip issued is for information purposes only, as may not reflect important price adjustments. The values from your PWL Realized Gain & Losses Report are accurate and should be reported on Schedule 3 of your personal tax return.

T1135 Report – Foreign Income Verification Statement
If you own any foreign domiciled assets at PWL, you will receive a T1135 Report. Reporting these assets is only required if the cumulative cost of your total foreign assets (held at PWL or elsewhere) is greater than $100,000 CAD.

PFIC Reporting
For US persons for tax purposes, additional reporting is required for passive foreign income companies. These reports are expected to become available in early April.

Proceeds of securities dispositions

T5008 / RL-18
If you disposed of securities in your non-registered account during the year in question, you will receive a T5008 / RL-18.

Proceeds of dispositions are carried forward separately from any fees and commissions paid, as required by tax authorities.

The amount indicated in box 20 is the cost base according to the issuer’s records. Please not that at the time of determining your gain or loss from a disposition, you are required to make the adjustments, as needed, to the book cost or value of your securities in order to determine the adjusted cost base (or fiscal ACB). You can consult your portfolio statements, trade confirmations, trading summaries, Statement of Investment Income and Summary of Trust Income to obtain this information.

You should refer to your PWL Realized Gains & Losses Report to accurately determine your capital gains and losses for the year. The T5008 / RL-18 slip issued is for information purposes only, as there may be inaccuracies. The values from your PWL Realized Gain & Losses Report are accurate and should be reported on Schedule 3 of your personal tax return.

T5 / RL-3 – Statement of Investment income
The T5 / RL-3 reports all dividend income and interest income paid into your non-registered accounts. The amounts in the T5 / RL-3 slip boxes represent the totals for all your accounts indicated on the Investment Income Summary. Please note that the slip is not issued if the total investment income included in the summary is less than $50. However, you are required to include that income on your tax return.

• Foreign income – Dividend or interest income from foreign sources is shown in box 15 of T5 (box F of RL-3), and the tax paid to the foreign country for that income is reported in box 16 of T5 (box G of RL-3)
• Accrued interest – Interest accrued during the year on compound interest debt instruments (e.g., GICs) must be declared on an annual basis, even though no actual interest has been paid. The annual accrued interest on those instruments is included in your T5 / RL-3.
• Securities transferred to a registered account – If savings bonds or other debt obligations types of bonds are transferred with their accrued interest to an RRSP, RRIF, TFSA, FHSA, or RESP, they will be included in the T5 / RL-3 and will also appear on your Investment Income Summary.

Investment Income Summary
This summary recaps all investment income reported in your non-registered accounts during the period (in chronological order).

It also contains information on the interest you paid during the year, such as interest on margin account debt balances or accrued interest paid when buying bonds. Accrued interest paid must not be deducted from other interest received, but rather should be added to other financial expenses if they are deductible. Note that any annual administration fees for an RRSP, RRIF, TFSA, RESP, LIRA, LIF or RDSP paid outside those registered accounts are not deductible.

T5 / RL-3 High Interest Savings (HISA) reporting
These slips are produced by third parties and are exclusively sent to clients by mail.

Disposition of a high interest savings account (HISA) may be reflected on the T5008 but this does not trigger a capital gain and it therefore will not be shown on the PWL “Realized Gains & Losses Report”. The interest earned will be shown on a T5 slip and should be reported on “Line 12100 – Interest and other investment income”.

T3 / RL- 16 – Statement of Trust income Allocations and Designations, and summary
If you have trust units, you will receive tax information on a T3 / RL-16 (excluding mutual funds). This slip is accompanied by a Summary of Trust Income detailing the information on the slip.

*If you have units of a mutual fund trust, the company that manages the funds will send you the T3 / RL-16 directly. Note that some mutual funds can be structured as corporations. In that case, each company will send you the tax information on a T5 / RL-3.

Trading Summary
This summary recaps purchases, redemptions and dispositions of securities in your non-registered account during the period.
Contrary to the T5008 / RL-18, transaction amounts indicated in this summary include fees and commissions you have paid.

T5013 /RL-15 – Statement of Partnership income
If you hold an interest in a limited partnership (or general partnership), you will receive your tax information on a T5013 / RL-15.

Notice to holders mutual fund trust units or an interest in a limited partnership
Please note that mutual fund trusts (T3 / RL-16) and limited partnerships have until March 31 of the year following their distribution to send you tax information. You could receive these slips in separate mailings depending on when the information is published by third parties.

You may receive a Pending Income Trust Summary Report with the first T3 / RL-16 slips sent to you. This summary will list trusts for which issuers have not yet posted the tax information needed to produce tax slips, which will therefore be sent later.

Registered accounts

RRSP Contribution
RRSP contributions are split into two categories, contributions made in the first 60 days of the year and contributions made in the remainder of the year (typically March through December). Contributions made in the first 60 days of the year can be claimed against taxes paid the previous tax year.

Depending on the timing of your contributions you may receive multiple RRSP Contribution receipts between January and the beginning of March. The cumulative total of these receipts is deductible on your tax return for the previous tax year. Though, all RRSP deductions can be carried forward indefinitely and claimed on future tax returns.

T4RSP and T4RIF / RL-2 – RRSP, RRIF, LIF, LRIF or LIRA withdrawal
If you made a withdrawal from your RRSP, RRIF, LIF, LRIF or LIRA, you will receive a T4RSP or T4RIF, as applicable (and an RL-2 in Quebec), indicating the amount withdrawn and the tax withheld.

T4FHSA / RL-32 – FHSA contribution or withdrawal
If you made a withdrawal or contribution to your FHSA, you will receive a T4FHSA/RL-32 indicating the amount withdrawn, contributed and, if applicable, the tax withheld. These amounts must be reported when you file your income tax return.

T4A / RL-1 – RDSP payment or RESP withdrawal
If a payment is made from an RDSP or if income is withdrawn from an RESP, a T4A slip will be issued in the plan beneficiary’s name. The capital withdrawn from an RESP is not subject to tax.

Miscellaneous

NR4
Non-residents of Canada will receive and NR4 – Statement of Amounts Paid or Credited to Non-Residents of Canada. This slip states the gross investment income and tax withheld (if applicable) as well as withdrawals from registered accounts.