When do you have to prepare a T5008 slip
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When do you have to prepare a T5008 slip
The following persons have to file a T5008 slip and 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 (section 51.1).
Note
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. For more information, see Interpretation Bulletin IT115, Fractional Interest in Shares.
Forms and publications
- Guide T4091, T5008 Guide Return of Securities Transactions
- Form T5008SUM, Return of Securities Transactions
- Form T5008, Statement of Securities Transactions
- Interpretation Bulletin IT479, Transactions in securities
- Date modified:
- 2016-01-07