In an effort to help you better understand your income tax information being mailed to you, as well as to answer any general questions about your tax receipts or tax slips that you may have, we have prepared a list of frequently asked questions.
Please refer to the below most common answered questions asked by our customers.
Tax Slips and Receipt Questions
The type of tax slip you can expect to receive depends on the type of income you have received in the year and whether you were a resident of Canada for tax purposes.
T5 Statement of Investment Income, Relevé 3
A T5 slip is issued for investment income earned in excess of $50 by Canadian residents. Investment income includes income from the following sources:
If you are a Quebec resident, you will also receive a Relevé 3 in addition to a T5 slip. If you are a non-resident of Canada, you will only be issued a NR4 slip (refer to the NR4 Statement of Investment Income section).
T4A, T4RSP, T4RIF, Relevé 1, Relevé 2
The T4A slip reports amounts paid or deemed to be paid from various types of income. Generally speaking, these may include payments from a Registered Education Savings Plan (RESP), from a Registered Disability Savings Plan (RDSP), and in some circumstances, amounts paid from a Tax-Free Savings Account (TFSA). If you are a resident of Quebec, you will also receive a Relevé 1 for such payments.
Actual or deemed withdrawals from a Registered Retirement Saving Plan (RRSP) will be reported on a T4RSP slip, while similar withdrawals from a Registered Retirement Income Fund (RRIF) will be reported on a T4RIF slip. If you are a resident of Quebec, you will also receive a Relevé 2 for such withdrawals.
T5008 Statement of Securities Transactions
T5008 slips report redemptions, dispositions, or cancellations of securities. In some instances, your year end statement will serve as your T5008.
NR4 Statement of Investment Income
If you resided in a country other than Canada at any point within the year, a NR4 slip will be issued in respect of income you receive while you were resident outside of Canada.
The tax slips noted below will be mailed out by the end of February of the following year (for example, for the 2014 calendar year, the below tax slips will be mailed out by February 28, 2015):
*CRA requires these to be distributed by 90 days after the Trust’s taxation year end, which results in mailing in March for NR4 slips issued by Trusts.
Please allow 5 business days from the date of mailing for delivery.
Scotiabank as a dealer does not directly issue mutual fund tax slips. As a mutual fund investor, you will receive a T3 and/or T5 directly from the Fund Company that manages and sells the funds you hold. As an example, for ScotiaFunds you will receive your tax slips from 1832 Asset Management.
For T5 slips, these will be mailed out by the end of February of the following year (for example, for the 2014 calendar year, the T5 slip will be mailed out by February 28, 2015). For T3 slips, these will be mailed by 90 days after the ScotiaFund’s year end (For example, for a ScotiaFund that may have a December 15 year end, the 2015 T3 will be mailed by March 16, 2015). Please allow 5 business days from the date of mailing for delivery.
Contributions made during the first 60 days of the year will be mailed out by the end of March of that year (for example for contributions made between January 1, 2014 to March 3, 2014, contribution receipts were mailed out by March 31, 2014). Alternatively, they can also be provided at the time the contribution has been made when these contributions are made at the branch.
Where contributions are made in the remainder of the year (for example during the period of March 4, 2014 to December 31, 2014), the RRSP contribution receipt will be mailed by the last day of February of the following year (for example February 2015). Please allow 5 business days for delivery.
Duplicate tax receipts/slips can be requested by visiting your branch or by Scotia OnLine through the Communications Centre. If you would like to request the duplicate tax receipt/slip by Scotia OnLine through Communications Centre, please select “Send a Message” and the select the subject as “RRSP GIC and Saving account”. Duplicate tax receipts/slips requested through Scotia OnLine will be mailed to you at the address that appears on the tax receipts/slips.
No. However, you can request a paper copy of your tax receipt/slip through Scotia OnLine’s Communications Centre by selecting “Send a Message” with the subject as “RRSP GIC and Saving account”. Once your request has been received/reviewed, we will mail you a paper copy of your tax receipt/slip at the address that appears on the tax receipt/slip.
Address changes are made instantaneously and generally would be captured on the tax receipts. However, if you have informed us of your change of address during a period where we have already commenced printing of the tax receipts/slips (for example, after December) the address change will not be captured on your tax receipt/slip.
Please note that we will not issue amended tax receipts/slips for address changes.
The T4RSP/T4RIF slip will be issued to you in February of the following year in which the actual withdrawal from your plan is made.
Please keep in mind that where withdrawals are requested near the end of December, while the redemption of the mutual funds held within the plan may occur that year, the funds may not leave the plan until the following year. As a result, tax slips for that withdrawal may not be issued to you for the calendar year in which the withdrawal was requested, but instead would be issued to you for the following calendar year, when the funds have actually left your plan.
For instance, if you held mutual funds in your RRSP and requested a withdrawal from your RRSP near the end of December 2014, the settlement date for the redemption of your mutual funds may not occur until early 2015, which is when the funds would leave your plan. As a result, the tax receipt for this withdrawal will be issued for the 2015 year and will not be mailed out until 2016.
Where there is more than one recipient of the investment income, the Canada Revenue Agency (CRA) requires only one T5 slip to be issued. The one slip will be issued with the names of both account holders if held by two individuals. Where there are more than 2 account holders for the same account, the T5 slip will be issued with the name of the individual(s) who represent the group of investors.
General tax questions
Under the Income Tax Act (Canada), there is no requirement to withhold taxes on the annual minimum payment that is required to be paid out from a RIF. However, any amounts paid in excess of the annual minimum payment are subject to withholding tax.
For withdrawals from a RRSP there is a requirement to withhold taxes (except for amounts withdrawn under the Life-long Learning Plan (LLP) or Home Buyer’s Plan (HBP)). The withholding tax rates for lump-sum payments made out of a RRSP (except those under the LLP or HBP), or lump-sum payments made out of a RRIF in excess of the annual minimum payment for the year, are as follows:
The annual TFSA dollar limit for 2015 is $10,000 and for 2016 is anticipated to be $5,500. However, a person’s total TFSA contribution room may be impacted by other factors such as their age, whether they have already contributed to a TFSA, their unused TFSA contribution room, withdrawals made in the previous year, or whether a person became a non-resident of Canada in the year, to name a few. We are not aware of all the facts and circumstances that may impact your contribution room and consequently, we suggest you consult your tax advisor or review CRA’s website to ensure you do not over contribute to your TFSA. Overcontributions could have adverse tax consequences.
The Canada Revenue Agency (CRA) no longer reports the TFSA contribution room on your annual Notice of Assessment (NOA). However, you can contact the CRA’s Automated Tax Information Phone Service (TIPS) at 1-800-267-6999 or access CRA’s My Account at http://www.cra-arc.gc.ca/myaccount to find out your TFSA contribution room.
For further information on TFSA contribution room, please also visit http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/tfsa-celi/cntrbtn-eng.html