Jordan Wealth Management Group - ScotiaMcLeod Truro

Our firm issues several tax slips and supporting documents to assist you in preparing your tax return. This guide outlines the slips and documents you may receive, the information they provide and their purpose. We suggest that you ensure you have all your slips before filing your tax return. It is your responsibility to ensure that all income is reported on your Income Tax Return, whether or not it is reported on a tax slip.

If you hold mutual fund units in a non-registered account, we suggest waiting until you have received your slips from each fund company before filing your tax return.

The ScotiaMcLeod Annual Trading Summary is provided to assist you in calculating reportable income associated with activity in your regular (non-Registered) account. Please note that the Annual Trading Summary is not a tax document; it is provided for information purposes only, and does not need to be filed with your tax return.

While the Annual Trading Summary does not include any calculations or tabulations, it does list all the trade-related activity* that took place during the year to assist you in calculating any gains or losses on disposition of a security or securities in your account.

*Trade related activity refers to the following transactions which are included on the Annual Trading Summary:

• Sells, Buys
• Stock Dividends and Splits
• Reverse Splits
• Purchases, including Pre-Authorized Trading, Pre-Authorized Chequing, Equity and Mutual Fund dividend reinvestment
• Redemptions, Maturities, Systematic Withdrawal Programs
• Contributions in kind to an Registered Retirement Savings Plan
• RRSP Swaps (Paid, Withdraw, Refund)
• Name Changes, Mergers
• Expiries, Exercises, Rights, Warrants, Options, Mortgage Backed Securities entries
• Deliver against Payment (DAP) Sales
• Option Assignments

The T5 reports aggregate income payments made to clients though cash and margins including:

• Payments of dividends;
• Interest income from stocks, interest and accrued interest from cash, bonds, compound bonds and other debt instruments.
• Income from investments held in other currencies will be reported on a separate tax slip in the currency in which the income was paid.
• Split shares and specialty products (REITS, Premium) are reported on separate slips and distributed separately.
• Both a T5 and NR4 will be issued in cases where residency status changes during the year .
• Interest earned on strip, coupons/residues in non-registered account must be reported annually. A T5 will not be issued; therefore clients must calculate the reportable income manually.

The T5 Summary, which accompanies the tax slip, provides details of dividends and interest income amounts in the "Paid to You" column and any income expenses incurred in the "Paid to You" column. In certain circumstances the investment interest expenses may qualify as a tax deduction. The Summary is provided for information purposes only and does not need to be filed with a tax return.

Non residents will receive an NR4 slip.

The T3 Supplementary Statement of Trust Income Allocations & Designations reports income from Income Trust and Mutual Funds (reported by each fund company). This includes totals of all taxable trust unit distributions.

Depending on the holdings in the client's account and the time we receive the information from the fund companies, the client may receive multiple tax slips that can be issued right up to the end of March. Each issue of a slip will be accompanied by information to guide the client in determining if they have received all expected slips from Scotia Capital Inc. or if they can expect to receive additional slips.

The T3 Summary of Investment Income details all trust or mutual funds unit distributions, including return of capital details. This is provided for information purposes only and does not need to be filed with the client's tax return.

Some payments made to the client in the current tax year may be declared as previous year's income and therefore must be included on the T3. 

Non residents will receive an NR4 slip.

The T5013 - Statement of Partnership Income reports gains and losses and/or distributions within a Limited Partnership. The T5013A is the Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses.

Non-residents are not eligible to invest in Canadian Limited Partnership Units. In the event that a ScotiaMcLeod or SMDI client does hold an LPU, an NR4 will be issued and the ScotiaMcLeod Advisor or SMDI will be advised to sell the assets.

Contribution receipts are issued for the value of cash or securities contributed to RRSP accounts during the calendar year. Receipts are generally mailed out in two phases:

• One receipt will be issued for all contributions made from March 2nd through December 31st
• A second receipt will be issued for contributions made during the first 60 days of the year.

Please note that contributions made during the first 60 days of the year may be applied to either the current year's tax return or next year's.

If a client withdraws funds from an RRSP (by either a partial withdrawal or by de-registering the plan), the gross amount of the withdrawal must be added to the income (Box 22). Scotia Capital Inc. is obligated to withhold the appropriate amount of tax (Box 30) from the withdrawal, and remit it to Canada Revenue Agency (CRA).

In addition, if you apply for a Refund of Excess contribution, it must be included as income as well.  A copy of the approved form T3012A, Tax Deduction Waiver on the Refund of Your Unused RRSP Contributions Made In ____, must be included with your return.

Also, if your client has participated in the Lifelong Learning Plan (LLP) or Homebuyer's Plan (HBP), the amount will be shown in Box 25 and Box 27 respectively. These amounts must be reported on Schedule 7 of the Income Tax return.

Non Residents who withdraw from an RRSP will receive an NR4 Receipt.

All RRIF and LIF (Life Income Fund) account holders are required to receive an annual minimum payment beginning the year after the account is opened. This income is taxable and is reported on a T4RIF slip (Box 16). If your client takes a payment in excess of this minimum, we are obligated to withhold taxes on the excess amount and remit it to the Canada Revenue Agency (CRA). The tax on the excess amount shown in Box 24 will be reported in Box 28.

Non-residents receiving a payment from a RRIF or LIF will receive an NR4B slip and will be taxed on all payments at the applicable rates.

Although Scotia Capital has prepared this information to assist you, we are not tax advisors and therefore always recommend that you consult with your personal tax advisor.