Income Tax Reporting (T5)
| Q. | Is a T5 tax slip generated for Compound Interest bonds ? |
| A. |
Yes. A T5 slip is generated for Compound Interest bonds. The T5 information reflects the accrued interest earned on every June 21 for the term of the bonds. If OSBs are redeemed early, a T5 slip is issued for the portion of the interest paid during that calendar year . The amount shown on a T5 slip should be reported by the bondholder as interest earned when filing a Federal Income Tax return. T5 slips are issued annually by the Registrar and are mailed directly to the bondholder’s address by February 28 of each year. |
| Q. | Is a T5 slip generated for Annual Interest bonds? |
| A. |
Yes. A T5 slip is generated for Annual Interest bonds. The T5 information reflects the interest payment(s) made on June 21. If OSBs are redeemed early, a T5 slip is issued for the portion of the interest paid during that calendar year. The amount shown on a T5 slip should be reported by the bondholder as interest earned when filing a Federal Income Tax return. T5 slips are issued annually by the Registrar and are mailed directly to the bondholder’s address by February 28 of each year. |
| Q. | If the registered bondholder is a minor, who claims the income tax? |
| A. |
For tax-related inquiries, callers should contact Canada Revenue Agency directly at 1-800-959-8281. |
| Q. | If an Ontario Savings Bond is transferred before an interest payment date, which bondholder receives the interest payment? Which bondholder receives the T5 slip? |
| A. |
For fully registered OSBs, the interest payment and T5 slip are generated by the Registrar, Computershare, and sent to the Registered Holder in whose name the bonds are registered two weeks prior to the interest payment date, as no transfers can take place during this time. For book-based OSBs, the interest payment and T5 slip come directly from the bondholder’s investment dealer. |
