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T5 Slips for Simplii Financial - Online or By Mail ?
March 5, 2019
11:27 am
gamgam
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Londonguy said

I'm still waiting for Simplii and Ideal Savings to show up -- nothing uploaded to my online CRA account yet either  

FYI - Simplii is shown as Canadian Imperial Bank of Commerce on the CRA acct.

March 5, 2019
2:41 pm
Londonguy
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gamgam said

FYI - Simplii is shown as Canadian Imperial Bank of Commerce on the CRA acct.  

Thanks, I knew that from last year -- I made my own customized interest schedule and list them as "CIBC Direct Banking dba Simplii Financial" in order to distinguish it from the regular CIBC where I also have a HISA.

Coincidentally the Simplii T5 arrived today so I'm good there now, and apparently I didn't earn enough reportable interest income at Ideal Savings outside of my registered products and compound GICs for them to generate a T5, although I still need to report my accrued interest. Fortunately, Ideal's online interface allows users to pull up accrued values by individual GIC as of any past date you want to pick, so that made things easy

March 5, 2019
4:58 pm
Bill
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Totally agree that CRA operates on patterns and only checks out anomalies, more than ever now that machines kick out what they want to look at more closely. I know a guy who was employed with a large, well-known company for decades, T4 income only pretty much, never filed (he saw no reason to, he did nothing else with his money because his wife and daughters spent it as soon as it came in), and he never heard from CRA.

I don't even know why we have to report amounts they already know about. I've heard at least they got rid of Schedule 4, just have to report the total without details now. Just for fun I'm tempted to leave out one of my T5s this year just to see if anything happens.

March 6, 2019
6:34 am
Londonguy
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Bill said

I don't even know why we have to report amounts they already know about. I've heard at least they got rid of Schedule 4, just have to report the total without details now. Just for fun I'm tempted to leave out one of my T5s this year just to see if anything happens.  

They did get rid of Schedule 4, so I made up my own continuity schedule for interest income and sent that in instead. If you have GICs in taxable accounts, my schedule is actually better because it shows accrued interest in a separate column, as well as having another column for reversing previously taxed interest back out, so that I (or my executors) don't inadvertently get dinged twice by blindly using the T5 amounts.

Maybe I can get a part-time job in forms design at CRA

March 6, 2019
7:01 am
Top It Up
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Bill said

I've heard at least they got rid of Schedule 4, just have to report the total without details now.  

YEP, it's been done away with and replaced with a DO NOT FILE worksheet.

Worksheet for the return

Complete the following charts for the lines that apply to your situation to calculate the amount to report on your return (Lines 120, 121, 180, and 221 / Line 235 / Line 452.) Keep this worksheet for your records. Do not attach it to the return you send to the CRA.

March 6, 2019
10:46 am
Bill
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Londonguy, wouldn't it be a lot easier just to use T5 amounts, ignore accruals - ? I think there's more chance of messing up if you're reporting amounts different than T5s show, no? Plus maybe attracting CRA's attention to see why T5 amounts filed by your fi's don't equal amounts reported by you.

March 6, 2019
12:55 pm
Londonguy
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Bill said
Londonguy, wouldn't it be a lot easier just to use T5 amounts, ignore accruals - ? I think there's more chance of messing up if you're reporting amounts different than T5s show, no? Plus maybe attracting CRA's attention to see why T5 amounts filed by your fi's don't equal amounts reported by you.  

Just trying to follow the rules -- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-121-interest-other-investment-income/line-121-bank-accounts-term-deposits-guaranteed-income-certificates-gics-other-similar-investments.html

If you have a lot of taxable GICs in different places, then yes, I agree, the record keeping can be a bit onerous, but what are you going to do? Just using the T5 figures may be easier but it doesn't comply with the regs, so I guess it's a case of which hassle would you like to invite upon yourself. As for receiving more scrutiny, that's okay -- by following the letter of the law I won't have a problem explaining anything I've done if I ever get asked.

I guess I could also just stop buying GICs, then I wouldn't have anything to accrue

March 6, 2019
12:55 pm
AltaRed
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My understanding is that for compound GICs, financial institutions provide the right amount of accrued interest each year for tax purposes (based on anniversary dates).

That won't confuse an executor because the anniversary date used is well known for calculating additional accruals to date of death. Some FIs will actually calculate it for an executor for Final T1 purposes.

March 6, 2019
4:55 pm
Bill
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Londonguy, I know the rules, and years ago there was a time I had a bunch of non-registered GICs and I'd do what you do, i.e. send in my reconciliation sheet to CRA along with my return to document why my T5 amounts did not equal the interest income reported. After a few years I realized probably no-one else in the country is doing this, plus I called CRA about it a couple of time and the agent's response was usually along the lines of "what are doing, guy? just use your T5 amounts". So I stopped.

AltaRed, trouble is you might buy a GIC October 1, 2018 so you've got 3 months of earned interest to report in 2018, fi's send you nothing about that. Only in February of 2020 do you get the first T5 (re 2019) covering the interest received or compounded Oct 1/19 for the Oct 1/18 - Sept 30/19 period. That's my recollection anyway.

March 6, 2019
5:37 pm
Norman1
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Londonguy said

Just trying to follow the rules -- Line 121 - Bank accounts, term deposits, guaranteed investment certificates (GICs), and other similar investments

If you have a lot of taxable GICs in different places, then yes, I agree, the record keeping can be a bit onerous, but what are you going to do? Just using the T5 figures may be easier but it doesn't comply with the regs, so I guess it's a case of which hassle would you like to invite upon yourself. …

I think the Line 121 instructions mentioned are closer to anniversary date or investment year reporting than calendar year accrual reporting:


Report the interest you earned during each complete investment year.

For example, if you made a long-term investment on July 1, 2017, report on your return for 2018 the interest that accumulated to the end of June 2018, even if you do not receive a T5 slip. Report the interest from July 2018 to June 2019 on your 2019 return.

That calendar year accrual reporting seems closer to what is required of corporations, partnerships, and certain trusts by Income Tax Act subsection 12(3) than of individuals by subsection 12(4):

Interest income

12 (3) Subject to subsection 12(4.1), in computing the income for a taxation year of a corporation, partnership, unit trust or any trust of which a corporation or a partnership is a beneficiary, there shall be included any interest on a debt obligation (other than interest in respect of an income bond, an income debenture, a small business bond, a small business development bond, a net income stabilization account or an indexed debt obligation) that accrues to it to the end of the year, or becomes receivable or is received by it before the end of the year, to the extent that the interest was not included in computing its income for a preceding taxation year.

Interest from investment contract

12 (4) Subject to subsection (4.1), if in a taxation year a taxpayer (other than a taxpayer to whom subsection (3) applies) holds an interest in, or for civil law a right in, an investment contract on any anniversary day of the contract, there shall be included in computing the taxpayer’s income for the year the interest that accrued to the taxpayer to the end of that day with respect to the investment contract, to the extent that the interest was not otherwise included in computing the taxpayer’s income for the year or any preceding taxation year.

March 7, 2019
5:21 am
Londonguy
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Bill said
...plus I called CRA about it a couple of time and the agent's response was usually along the lines of "what are doing, guy? just use your T5 amounts". So I stopped...

That's actually a really good point. I tend to overthink these things.

Since I haven't actually filed anything yet, after reading everybody's comments I've decided to go the simple route and just use the T5 amounts. Less work for me in the long run

March 7, 2019
10:14 am
Bill
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Londonguy, be careful when you transition. The T5s you get now for 2018 may include some income accrued to Dec 31 2017 (e.g. a GIC with a term from Feb 1/17 - Jan 31/18) which you may have already reported in 2017 using your accrual method.

March 7, 2019
1:03 pm
AltaRed
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The easiest way to remember all this is IF you had been in GICs with Annual payout, you only get interest on the anniversary date. That is what is reported to CRA. Compound GICs are no different except you didn't get the interest paid out to you on the annual anniversary dates.... but still own CRA the interest that would have been payable had it been an annual payout.

AFAIK, GIC and bond interest accruals have never been on a calendar year basis. No different than a stock that pays dividends quarterly and one of the quarterly dates is Jan 31, 2019. The dividend payout is for the Nov 18-Jan 19 period and is reportable on the 2019 tax return.

March 21, 2019
7:25 am
rfdm4g4g9
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rfdm4g4g9 said

Got mine today, March 1 - Friday.  

Just curious I got mine in mail on March 1. I have already filed my tax return and also got my refund.

But the Simplii T5 slip is YET to be uploaded online on CRA My Account by Simplii. Today is March 21, Thursday.

Last year I got mine in mail the same time about March 1, but by March 6 it was already uploaded online on CRA account.

Should I be concerned?

March 21, 2019
9:00 am
Denise Milani
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rfdm4g4g9 said

Just curious I got mine in mail on March 1. I have already filed my tax return and also got my refund.

But the Simplii T5 slip is YET to be uploaded online on CRA My Account by Simplii. Today is March 21, Thursday.

Last year I got mine in mail the same time about March 1, but by March 6 it was already uploaded online on CRA account.

Should I be concerned?  

Yes. Call CRA. They will tell you what form to use. You fill the form out and mail in with T slip. CRA amends your return and advises what to do...pay or not have to pay.

This happened to me once...I asked if I should just claim next year and got a resounding “NO” reply. After I had read if you make a few mistakes like that your name comes upwards on the list for a potential audit.

Make a list of your expected T slips...and don’t jump the gun.

Some FIs are not prompt any more.

March 21, 2019
11:38 am
hwyc
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March 21, 2019
2:38 pm
Bill
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rfdm4g4g9, as noted previously Simplii T5s will be issued under CIBC name.

Agree, no need to call or write CRA, just use MyAccount to amend assessed returns - i.e. just say line X had this amount, change it to this (the correct) amount, done. You'll get a new Notice of Reassessment soon, along with a refund or a request to pay some more, depending on your change.

February 15, 2021
2:54 pm
Winnie
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I just discovered, that Simplii T5 was already uploaded online on CRA account.

Big surprise, it's one and only T5 uploaded so far.
And, it's Simplii T5, not Tangerine!

February 15, 2021
3:24 pm
topgun
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Winnie said
I just discovered, that Simplii T5 was already uploaded online on CRA account.

Big surprise, it's one and only T5 uploaded so far.
And, it's Simplii T5, not Tangerine!  

I know the T5 slips I will get. None uploaded on CRA yet. Have to wait until March.

Have a Great Day

February 15, 2021
4:24 pm
hwyc
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Winnie said
I just discovered, that Simplii T5 was already uploaded online on CRA account.

Big surprise, it's one and only T5 uploaded so far.
And, it's Simplii T5, not Tangerine!  

Thanks for the note. I can see ours on CRA dated Feb 11, 2021

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