The CRA Guide for T5008’s explains how to prepare this form, to account for the Return of Securities Transactions. This form reports purchases and sales of securities. Transactions are reported to all persons; individuals, corporations, partnerships, trusts, or ANY other person residing in or outside Canada.
Who has to file a T5008 Information Return?
- every trader or dealer in securities who buys a security as principal (for their own account) or sells a security as an agent or nominee for any vendor;
- every person in the business of buying and selling precious metals in the form of certificates, bullion, or coins who makes a payment to another person for a sale of precious metals by that other person;
- every person who, as a nominee or agent for another person, gets the proceeds of a sale or other transaction carried out in the name of the nominee or agent;
- every person who makes a payment to, or acts as a nominee or agent for, an individual resident in Canada for the disposition or redemption of a debt obligation in bearer form; and
- every person (other than an individual who is not a trust) who acquires, redeems, or cancels a security issued by that same person, except when the transactions involve the following:
- exchanges of shares for new shares in the course of a reorganization of the capital of a corporation (section 86), if no consideration other than the new shares is receivable;
- securities disposed of when a partnership ends [subsection 98(3)];
- securities transferred when a new partnership is formed from a predecessor partnership [subsection 98(6)];
- convertible property (section 51), that is, when a corporation’s shares, bonds, debentures, or notes are exchanged for shares of the same corporation and no consideration other than the new shares is receivable;
- redemptions, cancellations, or acquisitions of securities made during an amalgamation (section 87); or
- exchange of capital property that is a convertible debt obligation for another debt obligation under section 51.1.
If cash or some other consideration totalling $200 or less is received instead of a fractional interest in shares during an exchange to which section 51 or 87 applies, you do not need to report the transaction. If the cash or other consideration is more than $200, you have to report the entire exchange transaction.
You do not need to file a T5008 information return for:
- a purchase of a security by one trader or dealer in securities from another, other than a non-resident trader or dealer in securities;
- a sale of a security by a trader or dealer in securities for another trader or dealer in securities;
- a sale of currencies or precious metals in the form of jewellery, works of art, or numismatic coins;
- a sale of precious metals if you ordinarily produce or sell precious metals in bulk or commercial quantities;
- a redemption, acquisition, or cancellation of a debt obligation by the issuer or agent when:
- the debt obligation was issued for its principal amount;
- the redemption, acquisition, or cancellation satisfies all of the issuer’s obligations;
- there are no disproportionate payments of principal and interest to any person with an interest in the debt obligation; and
- an information return other than a T5008 information return is required as a result of the redemption, acquisition, or cancellation;
- a sale of securities by a trader or dealer in securities on behalf of a person who is exempt from tax under section 149 (for example, municipalities, registered charities, non-profit organizations, and registered retirement savings plans);
- transactions reported under section 202 or 204 of the Income Tax Regulations;
- a deemed disposition of a security; or
- the expiry or exercise of an option, right, or warrant.
When is it due?
You have to file your T5008 information return on or before the last day of February following the year to which the information return applies. For example, if you are filing a T5008 information return for 2009, it has to be filed on or before the last day of February, 2010. If this date falls on a Saturday, Sunday, or statutory holiday, your information return is due on the next business day. Note that several provinces and territories have their own unique holidays. Therefore, due dates may be affected depending on where you reside. For a list of public holidays, visit www.cra.gc.ca/duedates.
Cessation of Business:
If you end your business or activity, you have to file a return for the year or part of the year no later than 30 days after the date the business or activity ended.
You can send recipients an electronic copy of their T5008 slips. The recipient must have consented in writing or by email to receive the slips electronically.
Send the recipients’ copies of the T5008 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 T5008 information return.