Box 14 – Other income from Canadian sources

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http://www.cra-arc.gc.ca/tx/bsnss/tpcs/slps/fnncl/t5/t5slp/cmpltng/bxs/bx14-eng.html

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Box 14 – Other income from Canadian sources

Identify a box in the "Other information" area as box 14. In the amount box, enter in Canadian currency the other income from Canadian sources.

Other income includes:

  • taxable dividends and deemed dividends (see Deemed dividends) paid to an individual by a corporation resident in Canada that is not a taxable Canadian corporation;
  • amounts reported by life insurers, to be included in a policyholder's income under paragraph 56(1)(j); and
  • amounts distributed from an eligible funeral arrangement (EFA) after 1995 to a taxpayer as a return of funds.

An EFA is an arrangement a qualifying person establishes and maintains solely to fund funeral or cemetery services for one or more individuals. The custodian then reports the amounts distributed from the arrangement after 1995 that are not payments for providing funeral or cemetery services and that do not reflect contributions previously made. The custodian can be the trustee of any trust governed by an EFA. If a trust is not involved, the custodian can be any person who receives a deposit under the EFA for providing funeral services. This person has to be licensed or authorized under the laws of a province or territory to provide funeral or cemetery services for individuals.

The EFA's custodian has to enter the code "14" in a generic box in the "Other information" area. The amount you have to report in the Amount box next to box 14 is the lesser of:

  • the amount distributed from the EFA to a taxpayer (other than as payment for providing funeral or cemetery services for the individual from whose account the amount was distributed); and
  • the amount on line 5 of the following chart:
1. Enter the individual's balance under the EFA before the refund (excluding the value of property in a cemetery care trust).
Blank space for dollar value
Line 1
2. Enter the total of all payments made from the EFA to provide funeral or cemetery services for the individual (other than cemetery services funded by property in a cemetery care trust).
Blank space for dollar value
Line 2
3. Line 1 plus line 2
Blank space for dollar value
Line 3
4. Enter the total of all relevant contributions made to the individual's EFA before the amount was distributed (other than contributions that were in a cemetery care trust).
Blank space for dollar value
Line 4
5. Line 3 minus line 4
Blank space for dollar value
Line 5

Relevant contributions are contributions made to the EFA and the contributions to another EFA later transferred to the EFA for the purpose of funding funeral or cemetery services for the individual.

Example

Mr. Gilbert contributed $8,000 to a prepaid funeral arrangement. The balance in the arrangement grew to $10,000 before Mr. Gilbert died. The total payments made from the arrangement for funeral services amounted to $9,500. The $500 balance was refunded to the estate. In this case, the custodian of the EFA would show $500 in box 14 of the T5 slip issued in the name of Mr. Gilbert's estate. This amount is the lesser of:

  • $500 (the amount of the refund); and
  • $2,000 ($500 + $9,500 − $8,000).

Note

Under proposed changes to the Act, amount 4 above will be further reduced by any relevant contributions previously transferred from the EFA account to another EFA account. For more details, see the explanatory notes for subsection 148.1(3) on the Department of Justice Web site.

Date modified:
2016-01-07