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Income Tax Reporting (T5)


Q. Is a T5 tax slip generated for Compound Interest bonds ?
A.

Yes. A T5 slip is generated for Compound Interest bonds. The T5 information reflects the accrued interest earned on every June 21 for the term of the bonds. If OSBs are redeemed early, a T5 slip is issued for the portion of the interest paid during that calendar year .

The amount shown on a T5 slip should be reported by the bondholder as interest earned when filing a Federal Income Tax return. T5 slips are issued annually by the Registrar and are mailed directly to the bondholder’s address by February 28 of each year.

 
Q. Is a T5 slip generated for Annual Interest bonds?
A.

Yes. A T5 slip is generated for Annual Interest bonds. The T5 information reflects the interest payment(s) made on June 21. If OSBs are redeemed early, a T5 slip is issued for the portion of the interest paid during that calendar year.

The amount shown on a T5 slip should be reported by the bondholder as interest earned when filing a Federal Income Tax return. T5 slips are issued annually by the Registrar and are mailed directly to the bondholder’s address by February 28 of each year.

 
Q. I bought Ontario Savings Bonds during the last campaign in June. Why didn't I get a T5 slip?
A.

Annual Interest Bond
Interest is payable annually on June 21. This means that if you purchased a Bond in June 2015 and did not redeem it in December 2015, you will receive your first interest payment on June 21, 2016, and will not receive a T5 slip until February 2017 indicating the interest paid on June 21, 2016.

Compound Interest Bond
Interest on Compound Interest bonds is compounded annually on June 21st and is paid at maturity or when the bonds are redeemed. If you purchased a Compound Interest Bond in June 2015, and did not redeem it in December 2015, you will not receive a T5 form until February 2017 indicating the interest earned for the period from June 21, 2015 to June 21, 2016.

 
Q. If the registered bondholder is a minor, who claims the income tax?
A.

For tax-related inquiries, callers should contact Canada Revenue Agency directly at 1-800-959-8281.

 
Q. If an Ontario Savings Bond is transferred before an interest payment date, which bondholder receives the interest payment? Which bondholder receives the T5 slip?
A.

For fully registered OSBs, the interest payment and T5 slip are generated by the Registrar, Computershare, and sent to the Registered Holder in whose name the bonds are registered two weeks prior to the interest payment date, as no transfers can take place during this time. For book-based OSBs, the interest payment and T5 slip come directly from the bondholder’s investment dealer.

Please note that if a fully registered OSB is sold or transferred after June 21, and then redeemed during that same year, the Registrar will issue a subsequent T5 slip for interest earned by the new bondholder.


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