*** Transcriber's Note: Please set your voice synthesizer to read most punctuation. When you encounter the caret sign at the end of a line, please enter the applicable information, if necessary. Throughout this document, areas outlined in colour are indicated by three plus signs at the beginning and at the end of major changes. Throughout this document, tables, charts and forms are set-up in a narrative format and are indicated by three backslashes at the beginning and at the end. Areas outlined in colour are indicated by three plus signs at the beginning and at the end of major changes. *** Canada Revenue Agency (Front page) T5 Guide - Return of Investment Income 2007 T4015(E) Revision 2007 PAGE 2 Before you start To help us process your T5 returns quickly and accurately, we would prefer that you type or machine-print your information slips. For more information, see "Chapter 3 - Filing methods" on page 5. Use the current versions of the T5 slip and T5 Summary when you file your T5 information return. Do not file a blank or nil T5 information return that has no T5 slips. You do not have to file a T5 return for a year during which you did not pay or credit any amounts. This guide does not deal with every tax situation. For a list of publications that explain certain situations in greater detail, see page 18. If you need more help after reading this guide, call us at 1-800-959-5525. If your problem cannot be resolved through normal channels, you should get in touch with the Problem Resolution Program co-ordinator at your tax services office. The address and telephone numbers are listed in the government section of your telephone book. You can order the publications you need, as well as blank copies of T5 slips, on our Web site or by telephone. Complete the order form at www.cra.gc.ca/orderforms or call 1-800-959-2221. Electronic mailing lists We can notify you immediately about new information on payroll, electronic filing for businesses and more. To subscribe, free of charge, visit our Web site at www.cra.gc.ca/lists. What's new for 2007? +++ Cancellation of pamphlet T4126 The pamphlet T4126, How to File the T5 Return of Investment Income, is cancelled. You can find all the information from the pamphlet in this guide. We will continue to publish this guide and it will be available on our Web site. Cancellation of preprinted T5 Summary mailout As part of our continuing efforts towards sustainable development, we cancelled the mailout of the preprinted T5 summary for the 2007 and subsequent years. Expanded Electronic Filing Services As part of our commitment to expand electronic filing services, Internet file transfer (XML) now allows you to transmit a return with 1 to 3,500 slips (up to 5MB) of the following information return types: AGR-1, NR4, T3, T4, T4A, T4A-NR, T1204, T4RIF, T4RSP, T5, T5007, T5008, T5018, T4A(OAS), T4A(P), T4E, RRSP contribution return, and T215. For more information, see "Internet file transfer" on page 6. Resource allowance deduction no longer available For tax years that begin after December 31, 2006, this deduction is no longer available. See "Box 20 - Amount eligible for resource allowance deduction" on page 9 for the percentages for 2003 to 2006. We changed the instructions for box 20 on the back of the T5 information slip. +++ PAGE 3 Table of contents Chapter 1 - General information, page 4 Who should use this guide?, page 4 Are you acting as a trustee?, page 4 Due date, page 4 Penalties and offences, page 4 Using the identification number, page 5 Interest on penalties, page 5 Cancelling or waiving penalties and interest, page 5 Notice of Assessment, page 5 Computer-printed (customized) forms, page 5 Chapter 2 - The T5 information return, page 5 Chapter 3 - Filing methods, page 5 Filing electronically, page 5 Filing on paper, page 6 Chapter 4 - The T5 slip, page 6 When do you have to prepare a T5 slip?, page 6 When do you not have to prepare a T5 slip?, page 7 Completing the T5 slip, page 7 Distributing T5 slips, page 11 Amending your T5 slips, page 11 Chapter 5 - The T5 Summary, page 11 Completing the T5 Summary, page 11 Filing the T5 Summary, page 13 Chapter 6 - Payments to non-residents of Canada, page 13 Chapter 7 - Accrued interest, page 13 Contracts acquired after 1989, page 13 Contracts acquired after November 12, 1981, and before 1990, page 14 Contracts acquired before November 13, 1981, page 14 Interest adjustments and penalties, page 14 Indexed debt obligations issued after October 16, 1991, page 14 Chapter 8 - Blended payments and deemed dividends, page 14 Blended payments, page 14 Deemed dividends, page 14 Chapter 9 - Unclaimed amounts: Dividends or interest, page 15 Remittances 15 Reporting requirements 15 Appendix A - References, page 18 Appendix B - Forms, page 19 T5, page 19 T5 Summary, page 20 Appendix C - Provincial and territorial codes, page 21 Appendix D - Income Tax Act references, page 21 Addresses of tax centres, page 22 If you have a visual impairment, you can get our publications in braille, large print, or etext (CD or diskette), or on audio cassette or MP3. For details, visit our Web site at www.cra.gc.ca/alternate or call 1-800-959- 2221. Confidentiality of information Under the Privacy Act, the information you provide on the T5 information return and related forms can be used only for the purposes authorized by law. Income Tax Act references In this guide, all legislative references are to the Income Tax Act and Income Tax Regulations. You can find a list of these references on page 21. PAGE 4 Chapter 1 - General information This guide explains how to complete the T5 information return. Who should use this guide? If you make certain payments to a resident of Canada, or if you receive certain payments as a nominee or agent for a person resident in Canada, you have to prepare a T5 information return. Note In certain situations, the Income Tax Act treats payments in a specific way. For example, you have to report some interest payments as dividends and some dividend payments as interest. This guide explains these and other rules. If you make certain payments to a non-resident of Canada, see "Chapter 6 - Payments to non-residents of Canada" on page 13. In this guide, the term "filer" refers to the person (that is, an individual or organization) that, under the Income Tax Act, must prepare and file a T5 information return. A filer is different from a service bureau or anyone else who may be filing the return for a filer. Do not use the T5 information return to report debt obligations in bearer form. For more information on reporting debt obligations in bearer form, see our Guide T4091, T5008 Guide - Return of Securities Transaction, and our new publication RC4227, Handbook on Securities Transactions - A Summary of the Reporting Requirements Under the Income Tax Regulations, available electronically only from our Web site. Note You cannot combine amounts when you provide T5 slips to the recipients. For example, when you submit us three T5 slips for the same recipient, issue three separate slips to the recipient. We only accept consolidated T5 slips if your corporation amalgamated with one or more corporations during the year. The new corporation can prepare a consolidated T5 information return for itself and the predecessor corporation(s). Are you acting as a trustee? If you are acting as a trustee and you own and control property for another person, you have to file a T3 Trust Income Tax and Information Return. If the beneficial owner keeps ownership and control of the property, you should report any income earned on a T5 information return. If you are acting as a trustee and you are not sure if you should complete a T3 or a T5 information return, see our Guide T4013, T3 Trust Guide. The information in that publication and in this guide will help you decide which return to complete. If you still have questions, call us at 1-800-959-5525. Due date You have to file your T5 information return before March 1 after the calendar year for which you are preparing it. For example, if you are filing a T5 information return for 2007, it has to be filed before March 1, 2008. If you end your business or activity, you have to file a return for the year or part-year no later than 30 days after the date the business or activity ended. Send the recipients' copies of the T5 slips to their last known address or deliver them in person. You have to do this on or before the day you have to file the T5 information return. Penalties and offences Late-filing penalty If you file your T5 information return late, or if you distribute slips to the recipients late, you are liable for each failure to a penalty of $25 per day, from a minimum of $100 to a maximum of $2,500. Failure to file an information return If you do not file an information return as required under the Income Tax Act and Income Tax Regulations, you may be guilty of an offence. In addition to any other penalty, if convicted, you are liable to: - a fine from a minimum of $1,000 to a maximum of $25,000; or - a fine and imprisonment for a maximum of 12 months. Failure to file an information return in an electronic format If you do not file an information return in an electronic format as required under the Income Tax Act and Income Tax Regulations, you may be guilty of an offence. In addition to any other penalty, you may be liable to a maximum penalty of $2,500 per slip. For more information on filing on electronic format, see "Chapter 3 - Filing methods" on page 5. Failure to provide information on a return Anyone who prepares an information return has to make a reasonable effort to get the necessary information, including identification numbers, from the individuals, corporations, or partnerships that will receive the slips. If you do not do this, you may be liable to a $100 penalty for each failure to comply with this requirement. Failure to provide an identification number Individuals (other than trusts), corporations, or partnerships have to give their social insurance number (SIN) or Business Number (BN) on request to anyone who has to prepare an information slip for them. A person or partnership that does not do so is liable to a $100 penalty for each failure to comply with this requirement. This penalty does not apply if the person or partnership had applied for, but not yet received, a SIN or BN at the time the return was filed. PAGE 5 A person who does not have an identification number must apply for one within 15 days of the date of an information request. After receiving the identification number, the person has 15 days to provide it to the person who is preparing an information return. A person who does not have a SIN can apply for one at any Service Canada Centre. For more information, see Information Circular 82-2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips. Using the identification number If you have to prepare an information return, or if you are an officer, employee, or agent of someone who does, you cannot knowingly use or communicate an identification number, or allow it to be communicated, without the written consent of the individual, taxpayer, or partnership, other than as required or authorized by law or for the purpose for which the number was provided. If you use an identification number for unauthorized purposes, you may be guilty of an offence. If convicted, you are liable to a maximum fine of $5,000 or imprisonment of up to 12 months, or both. Interest on penalties We charge interest, compounded daily at the prescribed rate, on the total amount of penalties and interest outstanding. Interest and penalties are payable to the Receiver General. Cancelling or waiving penalties and interest We may cancel, reduce, or waive penalties and any interest charges if you file a T5 information return late or distribute T5 slips to recipients late because of circumstances beyond your control. If this happens, include a letter with the return explaining why you were late. For more information, see Information Circular 07-1, Taxpayer Relief Provisions. Notice of Assessment We will issue a Notice of Assessment for the T5 information return only if we apply a penalty. Computer-printed (customized) forms You may want to use your own customized T5 slips to provide tax information to your clients. To get our written approval, send samples of your proposed computer-printed slips to: Electronic and Print Media Directorate Operations Division Albion Tower 25 Nicholas Street, seventeenth floor Ottawa ON K1A 0L5 For more information, see www.cra.gc.ca/customized or get Information Circular 97-2, Customized Forms, from our Web site. Chapter 2 - The T5 information return A T5 information return consists of T5 slips and the related T5 Summary. T5 slip - The T5 slip identifies the various types of investment income that residents of Canada have to report on their income tax and benefit returns. Do not report on a T5 slip investment income paid to non-residents of Canada. For information about payments to non-residents, see "Chapter 6 - Payments to non-residents of Canada" on page 13. The T5 slip has three individual slips printed on each page or sheet. These are intended to be used for laser or ink jet printers, for typing, or to be filled out by hand. For information on how to complete the T5 slip, see "Completing the T5 slip" on page 7. For a sample of the T5 slip, see page 19. T5 Summary - The T5 Summary records the total of the amounts you reported on all the related T5 slips. For information on how to complete the T5 Summary, see "Completing the T5 Summary" on page 11. For a sample of the T5 Summary, see page 20. Chapter 3 - Filing methods If you file from 1 to 500 information slips, we encourage you to file in eXtensible Markup Language (XML) format by Internet file transfer. You will get immediate confirmation that we received your information return. Filing electronically If you file more than 500 various information slips, you must file the return electronically in eXtensible Markup Language (XML) format. For 501 to 3,500 slips, file by Internet file transfer or on electronic media. For more than 3,500 slips, file on electronic media. If you fail to file electronically when required, we may apply a penalty. See "Failure to file an information return in an electronic format" on page 4. Electronic media You have to file your information return on DVD, CD, or diskette using eXtensible Markup Language (XML) format if you (or a representative) file more than 3,500 various information slips for the calendar year. If you are filing 3,500 slips or less, see "Internet file transfer" on page 6. If you file your information return on electronic media, do not send us the paper copy of the forms that make up the return. PAGE 6 For more information about this method of filing, call us at 1-800-665-5164 or visit our Web site at www.cra.gc.ca/electronicmedia. If you prefer, you can write to: Electronic Media Processing Unit Ottawa Technology Centre Canada Revenue Agency 875 Heron Road Ottawa ON K1A 1A2 Note You may need to correct information you originally filed on electronic format. If so, make these corrections on paper or in electronic format. For more information, see "Amending your T5 slips " on page 11. Internet file transfer +++ Internet file transfer (XML) allows you to transmit a return with 1 to 3,500 slips (up to 5 MB). +++ To use this Internet filing service, you need to have a Web access code (WAC). The returns must be in the mandatory eXtensible Markup Language (XML) format and must conform to our specifications found at www.cra.gc.ca/file- xml. For filers who filed information returns using electronic media or Internet file transfer last year, we will send you a letter in December with your account number and associated WAC. If you did not file electronically last year or if you did not receive your letter, call us after January 6, 2008, at 1-877-322-7849 to get a WAC. For more detailed filing instructions, go to www.cra.gc.ca/file-xml. Filing on paper You can file on paper if you file, for the calendar year, 1 to 500 various information slips. If you are filing your T5 information return on paper, keep the following in mind when you complete the forms that make up the return: - Use the current versions of the T5 slip and T5 Summary. You can download them in regular or fillable format from our Web site at www.cra.gc.ca/forms. You can also order them at www.cra.gc.ca/orderforms or by calling 1-800-959- 2221. - Do not tape, tear, or stamp any of the T5 forms. - For all dollar amounts, use a comma to separate thousands and a period to separate dollars from cents. Do not use dollar signs ($). Example 2,345.67 - When no entry is required, leave boxes and areas blank. Do not enter nil, N/A, dashes (-), or zeros in these empty boxes. - Do not change the title of any box or area on the forms. - Enter an "X" in those boxes that need one. Do not use any other mark (for example, "check mark " or "dashes"). Report information only in the appropriate box or area provided. If you are not sure where to enter the information, call us at 1-800-959-5525. Chapter 4 - The T5 slip When do you have to prepare a T5 slip? If you make certain payments to a resident of Canada, or if you receive certain payments as a nominee or agent for a person resident in Canada, you have to prepare a T5 slip. These payments include: - eligible dividends and dividends other than eligible dividends (including most deemed dividends); - interest from: -- a fully registered bond or debenture; -- money loaned to or on deposit with, or property of any kind placed with, a corporation, association, organization, or institution; -- an account with an investment dealer or broker; -- an insurance policy or annuity contract (when the interest is paid by an insurer); or -- an amount owing as compensation for expropriated property; - certain amounts distributed from an eligible funeral arrangement (see "Box 14 – Other income from Canadian sources" on page 8); - amounts that have to be included in a policyholder's income under section 12.2; - royalties from the use of a work, an invention, or a right to take natural resources; or - blended payments of income and capital made by a corporation, association, organization, or institution. For more information, see "Blended payments" on page 14. For investment contracts acquired before 1990, you have to report accrued interest every three years, unless the recipient has elected to report annually. This calculation is based on the calendar year. For more information, see "Contracts acquired after November 12, 1981, and before 1990 " on page 14. For investment contracts acquired after 1989, you have to report accrued interest every year. Base this calculation on the date the investment contract was issued. We will consider an investment contract acquired before 1990 to be a new contract acquired after 1989 if certain material changes were made after 1989. For details, see Interpretation Bulletin IT-448, Dispositions - Changes in Terms of Securities, and its Special Release. PAGE 7 We explain special accrual rules for indexed debt obligations in " Indexed debt obligations issued after October 16, 1991" on page 14. When do you not have to prepare a T5 slip? You do not have to prepare a T5 slip to report: - the interest part of a blended payment made by an individual; - interest one individual pays to another, such as interest paid on a private mortgage (this does not include investment dealers or brokers making payments for client accounts); - interest paid on loans from banks, financial houses, or other institutions whose usual business includes lending money; - capital dividends, as described in Interpretation Bulletin IT-66, Capital Dividends; - amounts paid or credited to non-residents of Canada (see page 13); - interest on an investment contract accrued or payable during the year to a corporation, partnership, unit trust, or any trust of which a corporation or partnership is a beneficiary; - an amount distributed from an eligible funeral arrangement, if the amount is a return of contributions only; - interest paid to farmers under the net income stabilization account program, Fund 2 (these amounts are reported on an AGR-1 slip); or - amounts paid to one recipient when the total amount for the year is less than $50. Completing the T5 slip Before you complete the T5 slips, see the information under "Chapter 3 – Filing methods" on page 5. We can process your return more efficiently if you follow these instructions. Recipient's name and address Enter the information in the white area provided. If more than one recipient is entitled to the investment income (for example, interest credited to a joint account), you only need to complete one T5 slip. If there are two recipients, enter both names. For a corporation, enter the name of the corporation. If the payment is made to an association, organization, or institution, enter that name. Do not enter the name of the secretary-treasurer or any other individual who has signing authority. If the payment is made to the registered holder of an investment (for example, broker or trustee of an RRSP), enter the name of the registered holder, not the name of the individual. If the payment is made to a trust, enter the name of the trust and not the name of the individual beneficiaries of this trust. First line - Enter the individual's last name first, followed by the usual first names and initials, or enter the name of the recipient corporation, association, organization, institution, or trust. For "Estate of" or "in Trust for," enter the usual last name, followed by the names and initials followed by "Estate of" or "in Trust for." Second line - Enter the second recipient's last name, first name, and initials. If there is only one recipient, leave this line blank. In all cases, enter the recipient's full mailing address as follows: Third, fourth, and fifth lines - Enter the recipient's full address, including city and province or territory. Enter the recipient's postal code. You can leave some lines blank. For the province or territory, use the two- letter abbreviations from the list on page 21. Payer's name and address Complete this area on each T5 slip. Enter the payer's full name and address. Year Enter the four digits of the calendar year during which the recipient earned the investment income. Boxes 10, 11, 12, 24, 25, and 26 - Dividends from Canadian corporations Dividends include all payments in cash or kind (including stock dividends) and all amounts deemed to be dividends. For details on deemed dividends, see "Deemed dividends" on page 14. For information on unclaimed dividends, see page 15. Dividends from taxable Canadian corporations paid to an individual (other than a trust that is a registered charity) are eligible for a federal dividend tax credit. If the dividends paid are dividends other than eligible dividends, read the following instructions for boxes 10, 11, and 12. If the dividends paid are eligible dividends, read the instructions for boxes 24, 25, and 26 on page 10. You can find more information about eligible dividends in the Guide T4012, T2 Corporation - Income Tax Guide. Note Dividends that pass through a corporation retain the character they had, as eligible dividends, or dividends other than eligible dividends when they were initially paid. Box 10 - Actual amount of dividends other than eligible dividends For dividends paid after 2005, enter the actual amount of dividends other than eligible dividends, or the amount we deem to be dividends other than eligible dividends, paid by a Canadian corporation. For dividends paid before 2006, enter the actual amount of dividends, or the amount we deem to be dividends, paid by a Canadian corporation. PAGE 8 For recipients who are individuals resident in Canada (other than a trust that is a registered charity), the dividends must be paid by a taxable Canadian corporation. Do not include: - dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a prescribed stock exchange (we treat these amounts as interest); - capital gains dividends (to report capital gains dividends, follow the instructions for box 18); - dividends paid to individuals who are not eligible for the federal dividend tax credit; - eligible dividends; and - taxable dividends, other than capital gains dividends, paid by a mortgage investment corporation to any of its shareholders (we treat these amounts as interest). Box 11 - Taxable amount of dividends other than eligible dividends Complete box 11 only for individuals resident in Canada (other than a trust that is a registered charity). Enter 25% more than the amount you reported in box 10. Do not enter an amount in box 11 if the dividends entered in box 10 are paid to a corporation. Box 12 - Dividend tax credit for dividends other than eligible dividends Complete box 12 only for individuals resident in Canada (other than a trust that is a registered charity). The amount you enter in box 12 is 13.3333% of the taxable amount you entered in box 11. Do not enter an amount in box 12 if the dividends entered in box 10 are paid to a corporation. Box 13 - Interest from Canadian sources Enter the following amounts, as long as you did not previously report them: - interest on a fully registered bond or debenture; - interest on money loaned to or on deposit with, or interest on any kind of property placed with, a corporation, association, organization, or institution; - interest on an account with an investment dealer or broker; - interest an insurer paid in connection with an insurance policy or annuity contract; - interest on an amount owing as compensation for property that has been expropriated; - the interest part of blended payments (see page 14); - dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a prescribed stock exchange; - taxable dividends, other than capital gains dividends, that a mortgage investment corporation paid to any of its shareholders; and - amounts reported by life insurers, to be included in a policyholder's income under paragraph 56(1)(j), except if they arise from a policy loan (see the instructions for box 14). Do not include: - interest from a source outside Canada (see the instructions for box 15); or - the accrued income from an annuity described under former paragraph 56(1)(d.1), or accrued income of certain life insurance policies (see the instructions for box 19). For more information on accrued interest on investment contracts, see page 13. For information on unclaimed interest, see page 15. Other information The "Other information" area in the middle of the T5 slip has blank boxes for you to enter codes and amounts that relate to other income from Canadian sources, foreign income, foreign tax paid, royalties from Canadian sources, accrued income: annuities, and amounts eligible for resource allowance deduction. You can also use this area for any other entries that apply. The boxes are not prenumbered as in the top part of the slip. Enter the codes that apply to the recipient. Note If more than three codes apply to the same recipient, use an additional T5 slip. Box 14 - Other income from Canadian sources Other income includes: - taxable dividends and deemed dividends (see "Deemed dividends" on page 14) paid to an individual by a corporation resident in Canada that is not a taxable Canadian corporation; - amounts to be included in a policyholder's income under a life insurance policy, if these amounts arise from a policy loan; and - amounts distributed from an eligible funeral arrangement (EFA) after 1995 to a taxpayer as a return of funds. An EFA is an arrangement a qualifying person establishes and maintains solely to fund funeral or cemetery services for one or more individuals. The custodian then reports the amounts distributed from the arrangement after 1995 that are not payments for providing funeral or cemetery services and that do not reflect contributions previously made. The custodian can be the trustee of any trust governed by an EFA. If a trust is not involved, the custodian can be any person who receives a deposit under the EFA for providing funeral services. This person has to be licensed or authorized under the laws of a province or territory to provide funeral or cemetery services for individuals. PAGE 9 The EFA's custodian has to enter the code "14" in a generic box in the "Other information" area. The amount you have to report in the Amount box next to box 14 is the lesser of: - the amount distributed from the EFA to a taxpayer (other than as payment for providing funeral or cemetery services for the individual from whose account the amount was distributed); and - the amount on line 5 of the following chart: \\\ Line 1: Enter the individual's balance under the EFA before the refund (excluding the value of property in a cemetery care trust). ^ Line 2:.Enter the total of all payments made from the EFA to provide funeral or cemetery services for the individual (other than cemetery services funded by property in a cemetery care trust). ^ Line 3: Line 1 plus line 2 = ^ Line 4: Enter the total of all relevant contributions made to the individual's EFA before the amount was distributed (other than contributions that were in a cemetery care trust). ^ Line 5: Line 3 minus line 4 = ^ Relevant contributions are contributions made to the EFA and the contributions to another EFA later transferred to the EFA for the purpose of funding funeral or cemetery services for the individual. \\\ Example Mr. Gilbert contributed $8,000 to a prepaid funeral arrangement. The balance in the arrangement grew to $10,000 before Mr. Gilbert died. The total payments made from the arrangement for funeral services amounted to $9,500. The $500 balance was refunded to the estate. In this case, the custodian of the EFA would show $500 in box 14 of the T5 slip issued in the name of Mr. Gilbert's estate. This amount is the lesser of: - $500 (the refund amount); and - $2,000 ($500 + $9,500 minus $8,000). Box 15 - Foreign income Identify a box in the "Other information" area as box 15. In the amount box, enter in Canadian currency the gross foreign income received from sources outside Canada. Do not reduce the amount by any foreign income tax that was withheld. Enter any amounts for foreign spin-off shares received from sources outside Canada. If you cannot report the amount in Canadian currency, see the instructions for box 27. Box 16 - Foreign tax paid Identify a box in the "Other information" area as box 16. In the amount box, enter the foreign income tax, if any, that was withheld from the gross foreign income you reported in box 15. Report the amount of the foreign income tax withheld in Canadian currency. The recipient of the T5 slip will need to know this amount to calculate the federal, provincial, or territorial foreign tax credits. Box 17 - Royalties from Canadian sources Identify a box in the "Other information" area as box 17. In the amount box, enter the royalties paid during the year. Royalties include payments for the use of a work or invention, or a right to take natural resources. Box 18 - Capital gains dividends Enter the amount of capital gains dividends that we consider to be a capital gain and that were paid by: - an investment corporation; - a mortgage investment corporation; or - a mutual fund corporation. Box 19 - Accrued income: Annuities Identify a box in the "Other information" area as box 19, and in the amount box, enter: - the accrued earnings on a life insurance policy to be included in a policyholder's income under section 12.2; and - the annuity payments to be included in income under former paragraph 56(1)(d.1) for annuity contracts issued before 1990. Box 20 - Amount eligible for resource allowance deduction +++ For tax years that begin after December 31, 2006, this deduction is no longer available. +++ For each tax year that ended after 2002 and began before 2007, the percentages that could be claimed were 25% for tax years before 2003, 22.5% for 2003, 18.75% for 2004, 16.25% for 2005, and 8.75% for 2006. Identify a box in the "Other information" area as box 20. In the amount box, enter all amounts included in box 17 that qualify as production royalties for the purposes of the resource allowance deduction, for tax years that began before 2007. Box 21 - Report code Enter on each slip one of the following codes to indicate whether the slip is: - "O" original; - "A" amended (changing the financial data or identification information); or - "C" cancelled. When using code "A," or "C," enter a description at the top of the T5 slip (for example, "AMENDED" or "CANCELLED") and include a letter of explanation when you file a copy of the slip with us. For more information, see "Amending your T5 slips" on page 11. PAGE 10 Box 22 - Recipient identification number If the recipient is an individual (other than a trust), enter the individual's social insurance number (SIN). For interest credited to a joint account, enter the SIN of only one of the individuals. You have to make a reasonable effort to get the recipient's SIN. If you do not, you may be liable to a $100 penalty for each time you do not provide the SIN on a slip. However, when a person tells you that he or she does not have a SIN but is applying for one, make sure you complete and file the return before the filing deadline. If you have not received the recipient's SIN by the time you prepare the T5 slip, leave box 22 blank. Note If you are reporting a payment made in trust to an institution for an individual (for example, a payment of interest made to the trustee of a self- directed RRSP), do not enter the individual's SIN in box 22. If the recipient is not an individual, enter the recipient's Business Number, if available. Box 23 - Recipient type Enter one of the following codes to identify the recipient to whom the investment income was paid: "1" for an individual; "2" for a joint account (two or more individuals); "3" for a corporation; "4" for an association, trust (RRSP trustee, fiduciary-trustee, nominee, or estate), club, or partnership; or "5" for a government, government enterprise, or international organization. Box 24 - Actual amount of eligible dividends Enter the actual amount of eligible dividends, or the amount we deem to be eligible dividends. Eligible dividends are paid after 2005 by corporations resident in Canada to individual shareholders resident in Canada. Among other requirements, to be eligible dividends, taxable dividends must have been designated as such by the corporation paying the taxable dividend. You can find more information about eligible dividends in Guide T4012, T2 Corporation - Income Tax Guide. Do not include: - dividends paid or payable by a credit union to a member who has a share in the credit union, if the share is not listed on a prescribed stock exchange (we treat these amounts as interest); - capital gains dividends (to report capital gains dividends, follow the instructions for box 18); - dividends paid to individuals who are not eligible for the federal dividend tax credit; - dividends other than eligible dividends; and - taxable dividends, other than capital gains dividends, paid by a mortgage investment corporation to any of its shareholders (we treat these amounts as interest). Box 25 - Taxable amount of eligible dividends Complete box 25 only for individuals resident in Canada (other than a trust that is a registered charity). Enter 45% more than the amount you reported in box 24. Do not enter an amount in box 25 if the dividends entered in box 24 are paid to a corporation. Box 26 - Dividend tax credit for eligible dividends Complete box 26 only for individuals resident in Canada (other than a trust that is a registered charity). The amount you enter in box 26 is 18.9655% of the taxable amount you entered in box 25. Do not enter an amount in box 26 if the dividends entered in box 24 are paid to a corporation. Box 27 - Foreign currency Leave this area blank if you are reporting amounts in Canadian dollars. If you cannot report amounts in Canadian dollars, identify the foreign currency according to the International Standard (ISO) 4217 called Codes for the Representation of Currencies and Funds. Enter the appropriate three- character alphabetic or numeric codes. If possible, use the alphabetic codes. For example: USD - United States, dollar JPY - Japan, yen SVC - El Salvador, colon HKD - Hong Kong, dollar AUD - Australia, dollar NZD - New Zealand, dollar DKK - Denmark, krone GBP - United Kingdom, pound EUR - European Union, euro OTH - Other When you report amounts in foreign currency, keep the following rules in mind: - do not combine different foreign currency types on a T5 slip. Report only one type of foreign currency on each slip; - print the name of the foreign currency on the slip (for example, U.S. DOLLARS) under generic boxes 15 and 16, for the recipient's benefit; - if you file a paper T5 information return and leave box 27 blank, we will process the amounts on the T5 slips as Canadian dollars; and - when completing your T5 Summary, you only have to enter one total income amount, whether or not the T5 slips are made up of different currency types. Box 28 - Transit If you are reporting for a financial institution or any similar business, enter the recipient's transit code or branch identification code (up to eight characters) in this area. PAGE 11 Box 29 - Recipient account If you can identify the recipient by an account number or policy number, enter the appropriate characters (up to 12) in this area. Distributing T5 slips Send us each T5 slip (three slips printed per sheet), along with the T5 Summary, before March 1 of the year after the calendar year for which the information return is required. Send these forms to: Ottawa Technology Centre P.O. Box 9633, Station T Ottawa ON K1G 6H3 Send two copies of the T5 slip to the recipient before March 1 of the year after the calendar year for which the T5 information return is required. You can send recipients an electronic copy of their T5 slips. The recipient must have consented in writing or by email to receive the slips electronically. You do not have to keep a copy of the T5 slips. However, you have to keep the information from which you prepared the slips in an accessible and readable format. Note When a business or activity ends, you have to send the appropriate copies of the T5 slips to the recipients and us no later than 30 days after the date the business or activity ended. Amending your T5 slips If you discover an error in your information return after filing it, you can make the corrections electronically or on paper, as described below. Electronic media Filers who discover errors in information they have already filed can send revisions to us on electronic media (DVD, CD, or diskette). The format used is eXtensible Markup Language (XML). For up-to-date information, visit our Web site at www.cra.gc.ca/file-xml. Send amendments on electronic media to: Electronic Media Processing Unit Ottawa Technology Centre Canada Revenue Agency 875 Heron Road Ottawa ON K1A 1A2 Internet file transfer You can send amended slips using Internet file transfer. For more information, see www.cra.gc.ca/file-xml. Paper submissions If you have to change some of the data on a slip, change only the required entries and leave the same amounts in the other boxes. You only have to file the amended slip. Print the word "AMENDED" at the top of the revised slip. Send two copies of the amended slip to the recipient. Send a copy of the slip to your tax centre with a letter explaining the reason for the amendment. Provide your filer identification number on your letter. We list the tax centre addresses on page 22. Note You do not have to file an amended summary when you send in amended slips. Cancelled slips - If you issued a slip by mistake and you want to cancel it, send us another slip with the same data as on the original slip. Print the word "CANCELLED" at the top of the slip. Send two copies of the cancelled slip to the recipient. Duplicate slips - If you issue a slip to replace one that a client lost or destroyed, print the word "DUPLICATE" at the top of the replacement slip you are sending to the recipient. Do not send us a copy of the duplicate slip. Note If you are a subsidiary office and your head office filed the original slip, include the filer identification number used when the original slips were filed. Chapter 5 - The T5 Summary You have to complete a T5 Summary if you prepare one or more T5 slips. Completing the T5 Summary Before you complete the T5 Summary, see the information in "Chapter 3 – Filing methods" on page 5. Do not include amounts on the T5 Summary for which you have not prepared a T5 slip. Return for the year ended Enter the four digits of the calendar year to which the information return relates. Filer identification number The filer identification number is a unique number that applies to information returns (including the T5 information return). It has two alphabetic and seven numeric characters (for example, HA1234567). Do not enter your Business Number in this area. Enter your filer identification number in the space provided. If you have not filed a T5 information return in recent years or are unsure of your number, call 1-800-959-5525. It is important that you make every effort to get a filer identification number before filing your T5 return. However, do not delay filing your return, even if you have not received your filer identification number before the due date. File your return on time and attach a note to it explaining why you have not entered the number. Note If you are filing for the first time and do not yet have a filer identification number, we will send you a confirmation letter once we receive your first information return. This letter will contain your new filer identification number. PAGE 12 Additional T5 Summary Use this box if you are preparing more than one T5 information return and the returns are: - for the same filer with the same filer identification number; and - for the same year. Enter an "X" in this box on the T5 Summary for the second return and on each following T5 Summary as described above. Name and address of filer or nominee (four lines) Enter the name of the filer or nominee, and the full address of the branch or office filing the T5 Summary. Use the two-letter code for the province or territory. The codes are listed in Appendix C on page 21. Business Number It is important that you make every effort to provide us with your Business Number (BN) when filing your T5 return. Enter the 15 digits of your BN in this area. Have you filed a T5 information return before? If you have sent us a T5 information return in a previous year, enter an "X" in the "Yes" box. If this is the first year you are sending us a T5 information return, enter an "X" in the "No" box. Language Enter an "X" in the box for English or French. Any future correspondence and information we send you will be in the language you choose. Line 10 - Actual amount of dividends other than eligible dividends Enter the total from box 10 on all T5 slips. Line 11 - Taxable amount of dividends other than eligible dividends Enter the total from box 11 on all T5 slips. Line 12 - Dividend tax credit for dividends other than eligible dividends Enter the total from box 12 on all T5 slips. Line 13 - Interest from Canadian sources Enter the total from box 13 on all T5 slips. Line 14 - Other income from Canadian sources Enter the total from box 14 on all T5 slips. Line 15 - Foreign income Enter the total from box 15 on all T5 slips. Line 16 - Foreign tax paid Enter the total from box 16 on all T5 slips. You have to report this amount in Canadian currency. Line 17 - Royalties from Canadian sources Enter the total from box 17 on all T5 slips. Line 18 - Capital gains dividends Enter the total from box 18 on all T5 slips. Line 19 - Accrued income: Annuities Enter the total from box 19 on all T5 slips. Line 20 - Amount eligible for resource allowance deduction Enter the total from box 20 on all T5 slips. Line 24 - Actual amount of eligible dividends Enter the total from box 24 on all T5 slips. Line 25 - Taxable amount of eligible dividends Enter the total from box 25 on all T5 slips. Line 26 - Dividend tax credit for eligible dividends Enter the total from box 26 on all T5 slips. Line 31 - Total number of T5 slips filed Enter the total number of T5 slips (there are three slips per sheet) you are filing with the T5 Summary. Do not include in this total any slips you marked as being void or that you left blank. Lines 32 and 33 - Unclaimed amounts later paid out We require special reporting when you have been holding an unclaimed amount and you finally identified the rightful owner and paid out the amount. A separate information return is required to report these amounts. For information on how to complete the T5 Summary and T5 slips to report unclaimed amounts you later paid out, see page 15. Line 32 - Unclaimed amounts: Dividends and interest Enter the total of the amounts you identified as unclaimed dividends or unclaimed interest later paid out. These amounts are included in box 10, 13, or 24 of the T5 slips that you identified as "Unclaimed dividend account" or "Unclaimed interest account." For more information, see page 15. PAGE 13 Line 33 - Tax deducted from unclaimed amounts Enter the total amount of tax deducted shown on the T5 slips you identified as "Unclaimed dividend account" or "Unclaimed interest account." The amount of tax deducted is shown on the T5 slip directly below the recipient's postal code. For more information, see page 15. Lines 41 and 42 - Person from whom we can get more information Enter the name and telephone number of a person who can answer any questions we may have about the T5 information return. Certification Sign and date the information return in this area of the T5 Summary. Filing the T5 Summary You can file your T5 Summary on electronic media or by Internet file transfer. For more information, see "Chapter 3 – Filing methods" on page 5. If you filed on paper, send the completed T5 Summary, along with the related T5 slips to: Ottawa Technology Centre P.O. Box 9633, Station T Ottawa ON K1G 6H3 You must send these before March 1 of the year after the calendar year to which the T5 information return relates. When a business or activity ends, you have to send the T5 Summary and the related T5 slips no later than 30 days after the date the business or activity ended. You may want to keep a working copy of the T5 Summary for your records. Chapter 6 - Payments to non-residents of Canada You have to file an NR4 information return to report amounts paid or credited, or amounts we consider to be paid or credited, by residents of Canada to non-resident persons. You have to do this if the total annual amount you paid or credited is $50 or more, or if you withheld tax (regardless of the amount you paid or credited). For more information on how to complete the NR4 return, see Guide T4061, NR4 - Non-Resident Tax Withholding, Remitting, and Reporting. You have to withhold income tax of 25% (or the percentage established under a tax convention or agreement) on amounts you paid or credited to non- residents. Complete the remittance part (Part 2) of Form NR76, Non-Resident Tax - Statement of Account, and send it with the tax to: International Tax Services Office Canada Revenue Agency 2204 Walkley Road Ottawa ON K1A 1A8 Alternatively, you can make the payment to your chartered bank by the fifteenth day following the month in which the tax was withheld. For more information, see Information Circular 76-12, Applicable Rate of Part XIII Tax on Amounts Paid or Credited to Persons in Countries With Which Canada Has a Tax Convention, and Information Circular 77-16, Non-Resident Income Tax. If, as a resident of Canada who pays or credits amounts to or for a non- resident of Canada, you do not withhold (or you withhold but do not remit) non-resident tax, you are liable for the amount of tax you should have withheld and remitted, plus a penalty of 10% of the tax. We charge interest, compounded daily at the prescribed rate, on the total of the tax, penalties, and outstanding interest. For more information about how we determine an individual's residence for tax purposes, see Interpretation Bulletin IT-221-Consolid, Determination of an Individual's Residence Status. Chapter 7 - Accrued interest Contracts acquired after 1989 You have to prepare T5 slips each year for all investment contracts acquired after 1989. You have to prepare these slips annually even if you did not pay the interest. What is an investment contract? An investment contract is any debt obligation other than those excluded by the definition of investment contract in subsection 12(11). For example, a debt obligation that provides for the payment of interest at least annually is not an investment contract because it is excluded by paragraph (i) of the investment contract definition. A common type of investment contract would be a written agreement with a financial institution where a sum of money is invested for more than one year and the accrued interest on the funds invested is only paid at maturity (when the term of the contract expires). On the T5 slip, enter the total of all interest accrued to each anniversary day. Do not include any interest you previously reported. The anniversary day is: - the day that is one year minus a day after the day the contract was issued (and every successive one-year interval after that day); or - the day the contract was disposed of. PAGE 14 We consider an investment contract to be disposed of when it is converted, cancelled, sold, or redeemed. Example An investment contract was issued on October 29, 2003. It is disposed of on April 7, 2007, and all the interest is paid then. You have to prepare and file a T5 slip each year to report the interest that accrues to: - October 28, 2004; - October 28, 2005; - October 28, 2006; and - April 7, 2007. Contracts acquired after November 12, 1981, and before 1990 For investment contracts (other than Canada Savings Bonds and debt obligations in bearer form) acquired after November 12, 1981, and before 1990, you have to prepare a T5 slip to report the interest that accrues to every third anniversary of the investment contract. Do not include interest you previously reported. The third anniversary is the third December 31 after the end of the year in which the contract was originally issued, and each third December 31 after that. If a contract is disposed of before its third anniversary date, or between third anniversary dates, you have to prepare a T5 slip to report the interest earned from the date it was acquired, or its previous third anniversary, to the date of disposal. The first three-year anniversary for investment contracts acquired before 1982 began on December 31, 1988. Contracts acquired before November 13, 1981 Investment contracts acquired before November 13, 1981, are exempt from the three-year reporting requirement if they meet all the conditions in former subsection 12(10). However, contracts that the recipient can cancel subject to a penalty on payout are not exempt. Interest adjustments and penalties Sometimes an individual may withdraw funds from an investment contract after receiving T5 slips for a number of years. Withdrawing funds can often mean an early redemption penalty, which lowers the interest rate you previously calculated on the investment contract. As a result, the actual interest you pay to the recipient is less than the total of the accrued interest reflected on the T5 slips you issued to the recipient in previous years. In such cases, do not issue a negative T5 slip or amend the slips for previous years. Under subsection 20(21), the recipient is entitled to deduct, in the year in which the investment was disposed of, the excess interest previously included in income. Indexed debt obligations issued after October 16, 1991 An indexed debt obligation is a debt obligation with terms or conditions that provide for an adjustment (determined by a change in the buying power of money) to the amount owing under the obligation for a period during which it was outstanding. We treat as interest any increase or decrease in the amount owing under an indexed debt obligation relating to a change in the buying power of money. If the buying power of money decreases, you have to treat as interest any additional amount the holder of the obligation received or was entitled to receive in the year. If the buying power of money increases, treat the decrease in the amount owing under an indexed debt obligation as interest the debtor received or was entitled to receive in the year. In this situation, the holder of the obligation can deduct the amount paid to the debtor. Chapter 8 - Blended payments and deemed dividends Blended payments A blended payment is an amount made up partly of capital and partly of interest or some other type of income. You may not be able to easily identify the interest and capital parts. Treat as interest on a debt obligation the part that can be reasonably considered to be interest. Report this amount in the same way you would report any other interest. We do not consider a payment to be a blended payment if: - the interest or income element is definitely known; - the amount is received either as an annuity payment or in satisfaction of the recipient's rights under an annuity contract; or - the payment is from certain obligations issued at a discount. For more information, see archived Interpretation Bulletin IT-265, Payments of Income and Capital Combined. Deemed dividends Section 84 - Deemed dividends In some situations, we consider that an amount paid by a corporation resident in Canada and received by a shareholder is a dividend. In general terms, the situations include the following: a) the paid-up capital of the corporation increases other than by means of a stock dividend without a corresponding increase in net assets or decrease in net liabilities; b) property is distributed to shareholders when a corporation's business is wound-up, discontinued, or reorganized; PAGE 15 c) any of the company's own shares are redeemed, acquired, or cancelled, other than by an ordinary purchase in the open market; or d) the paid-up capital for any class of shares of capital stock is reduced. Generally, you calculate the deemed dividend for each of the situations described above as follows: - For situation a), include the increase in paid-up capital of the shares in that class. However, subtract any increase in the value of net assets (or decrease in the value of net liabilities) or any decrease in the paid-up capital of the shares of any other class. - For situation b), include the full amount or value of the funds or property distributed. However, subtract any reduction in the paid-up capital for the class of shares for which the distribution was made. - For situation c), include the full amount paid. However, deduct the paid-up capital for the shares that were redeemed, acquired, or cancelled. - For situation d), include the amount paid minus any decrease in paid-up capital. For more information on deemed dividends, call us at 1-800-959-5525. Subsection 15(3) - Deemed dividends Under certain circumstances, we may consider the interest or dividends paid by a corporation resident in Canada on an income bond or income debenture to be dividends. If they are eligible dividends, report these deemed dividends in boxes 24 and 25 of the T5 slip if the corporation pays them to an individual. Report them in box 24 only, if they are paid to a corporation. If they are dividends other than eligible dividends, report these deemed dividends in boxes 10 and 11 of the T5 slip if the corporation pays them to an individual. Report them in box 10 only, if they are paid to a corporation. Report amounts we do not consider to be dividends as interest income in box 13 or 14. For more information, see archived Interpretation Bulletin IT-52, Income Bonds and Income Debentures. Chapter 9 - Unclaimed amounts: Dividends or interest Remittances We use the term unclaimed dividends or unclaimed interest to refer to dividends or interest you receive in a year for another person (the beneficial owner) who remains unknown at the end of the next year. If you received any of these unclaimed amounts, you have to deduct a specified percentage (see the following table) as tax payable by that beneficial owner. Send the tax you withhold, along with a statement showing the period covered, the gross income amount, and the amount of tax you deducted to your tax centre, no later than 60 days after the end of the next year (due date). Send the payment and statement separately from any T5 information returns you are filing. \\\ Type of unclaimed amount: Dividend Percentage to be withheld and remitted: 33.3333% Remitting method: Statement Type of unclaimed amount: Interest Percentage to be withheld and remitted: 50% Remitting method: Statement \\\ We charge interest, compounded daily at the prescribed rate, on amounts you deduct but do not send us before the due date. We will charge interest from the date the remittance is due to the actual date you remit the amounts you deducted. Both the interest charges and the tax you deduct are payable to the Receiver General. A penalty applies if you do not remit tax withheld. The penalty is 10% of the amount you withheld but did not remit. If we have assessed this penalty, and then for a second time in the same calendar year you do not remit tax knowingly or under circumstances amounting to gross negligence, you could be subject to a penalty of 20% of the amount you withheld but did not remit. Note You do not have to withhold and remit tax for unclaimed amounts you included in your income for the current or any previous year, or on which you withheld and remitted tax in a previous year. Reporting requirements You have to follow special procedures to report unclaimed amounts you held and later paid out to the rightful owner. An owner who is a resident of Canada must report the gross amount of dividends or interest for the year during which you originally received the amount. You have to prepare a separate T5 slip and T5 Summary stating the amount you received for the recipient, the year in which you received the amount, and the amount of tax you remitted on it. If you pay unclaimed amounts you received in different calendar years to the same claimant in the same year, make sure you prepare separate T5 slips and T5 Summary forms for each calendar year in which you actually received the amounts. The calendar year on each T5 slip you issue must be the calendar year in which you received the amount, not the year you paid it to its rightful owner. Prepare a T5 slip for the previously unclaimed amount in all cases, regardless of the amount of income. When completing the T5 slip, enter the year you made the payment and the amount of tax you deducted in the space directly above the dividends from Canadian corporations and the federal credit (above boxes 25 and 26). Identify the T5 slip with the words "Unclaimed dividend account" or "Unclaimed interest account" directly below the area for your name and address. Also, enter the name of the person paying the amount, if different from that of the filer, directly below this description. See the examples of T5 slips on page 19. PAGE 16 A separate T5 Summary has to accompany these T5 slips. Identify the T5 Summary by entering either "UNCLAIMED DIVIDEND ACCOUNT" or "UNCLAIMED INTEREST ACCOUNT" on the second line provided for the name and address of the filer or nominee. Note Submissions for unclaimed dividends and unclaimed interest must be filed on paper. To calculate the federal dividend tax credit on unclaimed dividends later paid out, use the rate in effect for the calendar year in which you received the dividends. Note For 2006 and later-year eligible dividends, the taxable amount of dividends is 45% more than the amount paid. The dividend tax credit that applies to these dividends is 18.9655% of the taxable amount. For dividends received from 1988 to 2005 and for 2006 and later-year dividends other than eligible dividends, the taxable amount of dividends is 25% more than the amount paid. The federal dividend tax credit that applies to these dividends is 13.3333% of the taxable amount. For more information, see Information Circular 71-9, Unclaimed Dividends. If unclaimed interest or dividends received in 1987 or previous years are eligible for the interest and dividend income deduction, indicate this on the T5 slip. Example Over a period of several years, Agents Inc. (Agents) received dividend payments from XYZ Company Limited (XYZ), a Canadian public corporation subject to the general corporate income tax rate. Some of the dividends were on shares held by Agents for an unidentified shareholder. The dates and amounts appear in columns A and B of the table on this page. These amounts represent unclaimed dividends. They remained unclaimed on April 30, Agents' next fiscal year end. Before the due date (no later than 60 days after the year-end following the year in which the amounts are received), Agents deducted 33.3333% of the dividend amount (as shown in column D) and sent it to us. On June 7, 2007, Mr. Albert Chang advised Agents that he had inherited some stock in XYZ and was expecting dividends totalling $3,000. Agents paid Mr. Chang $2,667 (as shown in column E), the amount remaining after the unclaimed dividend tax was remitted. They gave him separate T5 slips for 2005 and 2006 showing the actual amounts in column B. The T5 for 2007 will be issued before March 1, 2008. The $333.33 tax remitted is available as a credit to Mr. Chang for the 2007 tax year when he files his income tax and benefit return. *** Transcriber's Note: In print, the following table was set-up as 5 columns, labelled as: Column A Date dividend received by Agents; Column B Dividend amount; Column C Deadline for remitting tax on unclaimed amount; Column D Amount of tax remitted by Agents; Column E Available for Mr. Chang. Please read as: *** \\\ Column A Date dividend received by Agents March 6, 2005 Column B Dividend amount $1,000 Column C Deadline for remitting tax on unclaimed amount June 29, 2006 Column D Amount of tax remitted by Agents $333 Column E Available for Mr. Chang $667 Column A Date dividend received by Agents April 28, 2006 Column B Dividend amount $1,000 Column C Deadline for remitting tax on unclaimed amount June 29, 2007* Column D Amount of tax remitted by Agents not applicable Column E Available for Mr. Chang $1,000* Column A Date dividend received by Agents May 27, 2007 Column B Dividend amount $1,000 Column C Deadline for remitting tax on unclaimed amount not applicable * Column D Amount of tax remitted by Agents not applicable Column E Available for Mr. Chang $1,000* Column A Date dividend received by Agents Totals Column B Dividend amount $3,000 Column D Amount of tax remitted by Agents $333 Column E Available for Mr. Chang $2,667 * The owner of the dividend amounts was identified on June 7, 2007. \\\ PAGE 17 Unclaimed dividends later paid out - Complete the T5 slip for the 2005 dividends as follows: \\\ T5 (07) (Front) Canada Revenue Agency STATEMENT OF INVESTMENT INCOME PAID TO CLAIMANT IN 2006 INOCME TAX DEDUCTED 333.33 Year 2005 Dividends from Canadian corporations Box 24 Actual amount of eligible dividends ^ Box 25 Taxable amount of eligible dividends ^ Federal credit Box 26 Dividend tax credit for eligible dividends ^ Dividends from Canadian corporations Box 10 Actual amount of dividends other than eligible dividends 1,000.00 Box 11 Taxable amount of dividends other than eligible dividends 1,250.00 Federal credit Box 12 Dividend tax credit for dividends other than eligible dividends 166.67 Box 13 Interest from Canadian sources ^ Box 18 Capital gains dividends ^ Box 21 Report code 0 Box 22 Recipient identification number 123 456 789 Box 23 Recipient type 1 Other information (see the back) Box ^ Amount ^ Box ^ Amount ^ Box ^ Amount^ Recipient's name (last name first) and address CHANG, ALBERT 1365 WOODRIDGE AVE. OURTOWN MB M1B 3W3 Payer's name and address AGENTS INC. 95 MAIN STREET ANYTOWN SK K1G 7G7 UNCLAIMED DIVIDEND ACCOUNT XYZ COMPANY LIMITED Currency and identification codes Box 27 F Foreign currency ^ Box 28 Transit ^ Box 29 Recipient account ^ For more information, see the back. \\\ Unclaimed dividends later paid out - Complete the T5 slip for the 2006 dividends as follows: \\\ T5 (07) (Front) Canada Revenue Agency STATEMENT OF INVESTMENT INCOME PAID TO CLAIMANT IN 2006 NO INCOME TAX DEDUCTED Year 2006 Dividends from Canadian corporations Box 24 Actual amount of eligible dividends 1,000.00 Box 25 Taxable amount of eligible dividends 1,250.00 Federal credit Box 26 Dividend tax credit for eligible dividends 237.07 Dividends from Canadian corporations Box 10 Actual amount of dividends other than eligible dividends ^ Box 11 Taxable amount of dividends other than eligible dividends ^ Federal credit Box 12 Dividend tax credit for dividends other than eligible dividends ^ Box 13 Interest from Canadian sources ^ Box 18 Capital gains dividends ^ Box 21 Report code 0 Box 22 Recipient identification number 123 456 789 Box 23 Recipient type 1 Other information (see the back) Box ^ Amount ^ Box ^ Amount ^ Box ^ Amount^ Recipient's name (last name first) and address CHANG, ALBERT 1365 WOODRIDGE AVE. OURTOWN MB M1B 3W3 Payer's name and address AGENTS INC. 95 MAIN STREET ANYTOWN SK K1G 7G7 UNCLAIMED DIVIDEND ACCOUNT XYZ COMPANY LIMITED Currency and identification codes Box 27 F Foreign currency ^ Box 28 Transit ^ Box 29 Recipient account ^ For more information, see the back. \\\ PAGE 18 Appendix A - References The following publications relate to topics in this guide and are available from our Web site at www.cra.gc.ca/forms or by calling 1-800-959-2221. Guides and other publications T4012 T2 Corporation - Income Tax Guide T4013 T3 Trust Guide T4061 NR4 - Non-Resident Tax Withholding, Remitting and Reporting T4091 T5008 Guide - Return of Securities Transactions RC4227 Handbook on Securities Transactions - A Summary of the Reporting Requirements Under the Income Tax Regulations Information circulars 07-1 Taxpayer Relief Provisions 71-9 Unclaimed Dividends 76-12 Applicable Rate of Part XIII Tax on Amounts Paid or Credited to Persons in Countries With Which Canada Has a Tax Convention 77-16 Non-Resident Income Tax 82-2 Social Insurance Number Legislation that Relates to the Preparation of Information Slips 97-2 Customized Forms (available in electronic format only) Interpretation bulletins IT-66 Capital Dividends IT-67 Taxable Dividends From Corporations Resident in Canada IT-88 Stock Dividends IT-149 Winding-up Dividend IT-221 Determination of an Individual's Residence Status IT-396 Interest Income IT-448 Dispositions - Changes in Terms of Securities (and its Special Release) IT-531 Eligible Funeral Arrangements Archived Interpretation bulletins The following interpretation bulletins are archived and kept for historical purposes. They are no longer available in print but can be accessed through our Web site at www.cra.gc.ca/menu/ITSA-e.html. These bulletins may contain law not currently in force. IT-52 Income Bonds and Income Debentures IT-265 Payments of Income and Capital Combined IT-507 Small Business Development Bonds and Small Business Bonds PAGE 19 Appendix B - Forms T5 slip *** Transcriber's Note: In print, the T5 slip appears 3 times on the page. The slip will be indicated only once. *** \\\ T5 (07) (Front) Canada Revenue Agency STATEMENT OF INVESTMENT INCOME Year ^ Dividends from Canadian corporations Box 24 Actual amount of eligible dividends ^ Box 25 Taxable amount of eligible dividends ^ Federal credit Box 26 Dividend tax credit for eligible dividends ^ Dividends from Canadian corporations Box 10 Actual amount of dividends other than eligible dividends ^ Box 11 Taxable amount of dividends other than eligible dividends ^ Federal credit Box 12 Dividend tax credit for dividends other than eligible dividends ^ Box 13 Interest from Canadian sources ^ Box 18 Capital gains dividends ^ Box 21 Report code ^ Box 22 Recipient identification number ^ Box 23 Recipient type ^ Other information (see the back) Box ^ Amount ^ Box ^ Amount ^ Box ^ Amount^ Recipient's name (last name first) and address ^ Payer's name and address ^ Currency and identification codes Box 27 F Foreign currency ^ Box 28 Transit ^ Box 29 Recipient account ^ For more information, see the back. If you are using this page for the recipient's copies, keep the bottom slip for your records. For information on how to complete this form, see the back. Detach this part before filing your T5 information return. If you are using this page for the recipient's copies, keep the bottom slip for your records. For information on how to complete this form, see the back. Detach this part before filing your T5 information return. \\\ PAGE 20 T5 Summary \\\ Canada Revenue Agency T5 Summary (07) (Front) RETURN OF INVESTMENT INCOME See information on the back. Complete this form using the instructions in the T4015, T5 Guide - Return of Investment Income. Do not use this area Information return for the year ended December 31, (Year) ^ Filer identification number ^ If this is an additional T5 Summary, enter "X" here. ^ Name of filer or nominee, and address of branch or office filing this form. Name ^ Address ^ City ^ Province/Territory ^ Postal code ^ Business Number (from Form PD7A or T2 return) ^ Have you filed a T5 information return before? Yes or No. ^ Indicate your language of choice for correspondence English or Français ^ T5 slip totals Do not include amounts for which a T5 slip has not been issued. Box 10 Actual amount of dividends other than eligible dividends ^ Box 11 Taxable amount of dividends other than eligible dividends ^ Box 12 Dividend tax credit for dividends other than eligible dividends ^ Box 13 Interest from Canadian sources ^ Box 14 Other income from Canadian sources ^ Box 15 Foreign income ^ Box 16 Foreign tax paid ^ Box 17 Royalties from Canadian sources ^ Box 18 Capital gains dividends ^ Box 19 Accrued income: Annuities ^ Box 20 Amount eligible for resource allowance deduction ^ Box 24 Actual amount of eligible dividends ^ Box 25 Taxable amount of eligible dividends ^ Box 26 Dividend tax credit for eligible dividends ^ Box 32 Unclaimed amounts - Dividends and interest ^ Box 33 Tax deducted from unclaimed amounts ^ Box 31 Total number of T5 slips filed ^ Do not use this area Box 50 ^ Box 51 ^ Box 52^ Person to contact about this information return Box 41 Name ^ Box 42 Telephone number (including area code) ^ Certification I certify that the information given on this T5 Summary form and related T5 slips is, to the best of my knowledge, correct and complete. Authorized person's signature ^ Position or office ^ Date (Year/Month/Day) ^ \\\ PAGE 21 Appendix C - Provincial and territorial codes Use the following abbreviations when you enter the province or territory on the T5 slip and T5 Summary. Newfoundland and Labrador NL Prince Edward Island PE Nova Scotia NS New Brunswick NB Quebec QC Ontario ON Manitoba MB Saskatchewan SK Alberta AB British Columbia BC Nunavut NU Northwest Territories NT Yukon YT Appendix D - Income Tax Act references You may find these references for the following topics helpful when using this guide. References are to the Income Tax Act, except where preceded by the letters "Reg.", in which case the reference is to the Income Tax Regulations. Topic Income and Tax Act reference Accrued interest 12(4), (9), (11), 20(14), (21), Reg. 201(4), page 13 Blended payments 16(1), (2), (3), (4), (5), page 14 Capital gains dividends 130(2), 130.1(4), 131(1),page 9 Deemed dividends 84, 15(3),page 15 Distribution of taxpayers' portions of returns Reg. 209(1), (2), page 4 Dividends from Canadian corporations 82(1), 130.1(2), 137(4.1),page 7 Due date Reg. 205(1), (2), page 4 Electronic filing Reg. 205.1, page 5 Eligible funeral arrangements (EFA) 148.1(1), (2), (3), 12(1)(z.4), Reg. 201(1),page 9 Failure to make or file an information return 238(1), page 4 Failure to provide a social insurance number 162(5), (6),page 4 Failure to remit amount withheld 227(9), page 15 Federal dividend tax credit 121, page 8 Foreign spin-offs 86.1, page 9 Indexed debt obligations 248(1), page 14 Interest from Canadian sources 130.1(2), 137(4.1), Reg. 201(1), page 12 Investment contracts 12(4), (11), Reg. 201(4), pages 7, 14 Late-filing penalty 162(7), page 4 Payments to non-residents Reg. 202(1), page 13 Requirements for preparing an information return 221(1), Reg. 201, page 5 Royalties from Canadian sources Reg. 201(1)(c), page 9 Unclaimed interest and dividends 153(4), page 15 PAGE 22 Addresses of tax centres Filers served by a tax services office on the left side of the following list should deal with the corresponding tax centre or office on the right. Bathurst, Halifax, Kingston, Moncton, Newfoundland and Labrador, Peterborough, Saint John, St. Catharines, and Sydney St. John's Tax Centre 290 Empire Avenue St. John's NL A1B 3Z1 Chicoutimi, Montérégie-Rive-Sud, Outaouais, Québec, Rimouski, and Trois- Rivières Jonquière Tax Centre 2251 René-Lévesque Boulevard Jonquière QC G7S 5J1 Laval, Montréal, Ottawa, Rouyn-Noranda, Sherbrooke, and Sudbury (Northeastern Ontario* only) Shawinigan-Sud Tax Centre 4695 - twelfth Avenue Shawinigan-Sud QC G9N 7S6 Belleville, Charlottetown, Hamilton, and Kitchener/Waterloo Summerside Tax Centre 275 Pope Road Summerside PE C1N 6A2 Sudbury (Sudbury/Nickel Belt** only), Toronto Centre, Toronto East, Toronto North, and Toronto West Sudbury Tax Services Office 1050 Notre-Dame Avenue Sudbury ON P3A 5C1 Calgary, Edmonton, Lethbridge, London, Red Deer, Saskatoon, Thunder Bay, Windsor, and Winnipeg Winnipeg Tax Centre 66 Stapon Road Winnipeg MB R3C 3M2 Burnaby-Fraser, Northern B.C. and Yukon, Regina, Southern Interior B.C., Vancouver, and Vancouver Island Surrey Tax Centre 9755 King George Highway Surrey BC V3T 5E1 * Northeastern Ontario includes all areas outside Sudbury/Nickel Belt (see below) that are served by the Sudbury Tax Services Office. ** The Sudbury/Nickel Belt area includes all postal codes beginning with P3A, P3B, P3C, P3E, P3G, P3L, P3N, P3P, and P3Y, as well as postal codes beginning with P0M and ending with 1A0, 1B0, 1C0, 1E0, 1H0, 1J0, 1K0, 1L0, 1M0, 1N0, 1P0, 1R0, 1S0, 1T0, 1V0, 1W0, 1Y0, 2C0, 2E0, 2M0, 2R0, 2S0, 2X0, 2Y0, 3A0, 3B0, 3C0, 3E0, and 3H0. 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