Canada Releases Updated Statement of Securities Transactions (T5008)

January 10, 2018 Paul Ogawa

The Canada Revenue Agency (CRA) recently released an updated version of their Statement of Securities Transactions, Form T5008, and the accompanying Publication T4091. Form T5008 is used by traders or dealers in securities to report purchases of securities as principal for their own account, and sales of securities they make as an agent or nominee, for any vendor. Issuers of securities and their agents or nominees use this information return to report redemptions, acquisitions, or cancellations of securities.

 

There are no changes to the T5008 slip itself, although there are edits made to the instructions page attached to the slips.

  • All URLs were updated to the “Canada.ca” address.
  • The mailing address for paper forms has been updated. The new address is as follows:
    • Jonquière Tax Centre, T5008 Program, PO Box 1300 LCD Jonquière, Jonquière QC G7S 0L5

The accompanying publication, T4091, does include certain edits for the TY2017 reporting period.

  • Internet file transfer: Internet filing will be available beginning January 8. 2018.
  • The sale of linked notes will be reported using the T5008 form:
    • Any assignment or transfer of a debt obligation after 2016 that results in a gain will be treated as reportable within a time span dictated by statute.
  • A new code for Equity Linked Notes has been introduced:
    • Code “ELN” will be used in Box 15 of the T5008 to report the transfer of these notes.
  • Taxation of switch fund shares: the act of exchanging one share of a mutual fund corporation for another share of a mutual fund corporation will treat the original share as being disposed of at fair market value if the share is recognized as a class of share by the investment fund.

As a reminder, the T5008 slip is due to recipients and the CRA by the last day in February of the year following the reported year: this year it is due February 28, 2018.

 

To review the T5008 form, click here. To review Publication T4091, click here.

About the Author

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.

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