Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: Requirement for a T-5
Position: Interest payments
Reasons: Reg 201 (b)
June 17, 1997
Business Returns Processing Division Financial Industries Division
Information Returns Section C. Tremblay
(613) 957-2744
Attention: Joe Hartwick
971466
XXXXXXXXXX
We are writing in response to your memorandum of June 3, 1997, wherein you request our opinion on whether XXXXXXXXXX should have included the December 1996 accrued interest amounts into the 1996 individual investor's income.
The Facts as Given
XXXXXXXXXX that provides commercial mortgages and bridge financing on a short term basis. Investors purchase a portion of a mortgage and are paid interest on a monthly basis. Interest payments are distributed to investors on the first day of the month following (ie Interest for December would be received on the first day of January).
The responsibility of the payer is found at subsection 201(b) of the Income Tax Regulations. Generally, a T-5 information return is required to be filed by every person who makes a payment to a resident of Canada as on account of interest. Accordingly, since XXXXXXXXXX does not pay the December 1996 interest till January 1997, the 1996 T-5 should not include the 1997 payment.
for Director
Financial Industries Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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© Her Majesty the Queen in Right of Canada, 1997
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© Sa Majesté la Reine du Chef du Canada, 1997
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