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Client Guide to 2019 Tax Reporting

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Client Guide to 2019 Tax Reporting HNW_NRG_C_Bleed_Transp Client guide to 2019 tax reporting This guide summarizes the important dates and required tax information to prepare your annual tax return. It also includes a handy list of potential tax slips you may receive from The Royal Trust Company and Royal Trust Corporation of Canada (Royal Trust) depending on your investment Please contact holdings and account activity. us if you have any questions about your tax package. Important dates T5 tax package – March 02, 2020 – last day for outstanding tax documents 2019 RRSP contributions. We issue several tax slips and April 30, 2020 – last day to file your supporting documents to assist you 2019 tax return without penalty. in preparing your tax return. It is important to ensure that you have all June 15, 2020 – last day to file your of your slips before you file your tax 2019 tax return without penalty if return. Please review the two handy you are self-employed. checklists within the cover letter of your T5 tax package: “Outstanding Access your tax slips online tax documents you may receive To help make tax time easier for from our firm” and “Outstanding tax you, your 2019 tax slips are available documents you may receive from electronically via WM Online. third parties.” This year, even more tax slips will be available online, including Multiple account holders/estates mutual fund tax slips issued by Joint accounts: Although tax slips for ® RBC (tax slips issued by other joint accounts are issued in the name issuers outside of RBC will continue of two (or more) individuals, Canada to be sent by regular mail). Simply Revenue Agency (CRA) only requires log in to WM Online to view your one Social Insurance Number (SIN) tax documents. For access to WM be included on the tax slip. Therefore, Online, please contact your only the primary account holder’s SIN Investment Counsellor. will be displayed on your tax slip. Page 2 of 4 Estate accounts: According to CRA, NOTE: Return of capital adjustments NOTE: You may receive tax packages there is no requirement to produce a need to be factored into calculating in April due to late disclosures and T5 slip to show income earned before any gains/losses. amendments by some income trusts and after the date of death. It is the and limited partnership units. Please responsibility of the beneficial owners Foreign spin-offs do not file your tax return before or the estate’s executor to report the For Canadian tax purposes, the receiving all required slips. appropriate share of income in the tax fair market value of foreign spin- Registered Retirement Savings return of the deceased individual. off shares received by a Canadian resident in a non-registered account Plan (RRSP) contribution Residency changes is considered to be a taxable foreign receipts If you have moved to or from a dividend and must be reported to CRA RRSP contribution receipts have a different country within the tax year, on your tax return. variety of mailings to capture all it is up to you to claim back any tax Legislation allows you to use an contributions made in 2019 (less withheld, as CRA does not refund the alternative tax treatment for eligible contributions made in the first 60 funds to RBC once they have been foreign spin-offs if certain criteria and days of 2019) as well as contributions paid. In addition, CRA does not accept time limits are met and an election is made during the first 60 days of 2020. amendments to or cancellations of filed with your tax return. Royal Trust NR4s once they have been issued. is still required to report the full fair Tax-Free Savings Account (TFSA) market value of the spin-off on the T5 In any calendar year, your total TFSA Non-resident tax on Canadian slip. contributions cannot exceed your income trust units and split- contribution room. If you withdrew share corporations The book value shown on your statement for a foreign spin-off funds from your TFSA in 2019, that Due to the nature of these securities, share will be the taxable foreign amount will be added to your the taxable breakdown is not dividend amount. The book value contribution room for 2020. available until after the calendar of the parent company shares will Non-Qualified Investments year is complete. Therefore, non- remain unchanged. resident accounts are not charged in a registered plan non-resident tax when distributions Different tax slip mailing dates Please be advised that there are are made during the year, but rather T3/RL-16, T5013/RL-15 significant punitive tax liabilities a one-time charge for the full year tax packages for holding a Non-Qualified is generated once the taxable Investment (NQI) in your registered Delivery of T3/RL-16 and T5013/RL-15 nature of the trust’s distributions is plan. If this applies to you, a letter packages depends on when determined. Any applicable charges detailing any NQI assets and the information is provided to us by will be processed in April 2020 and corresponding values will be mailed external issuers. CRA reporting reflected in your statements. to you in February 2020 to help you deadlines for issuers to provide file with CRA. Depending on your their tax information to financial Return of capital situation, you may wish to consider intermediaries (such as Royal Trust) Return of capital adjustments will be taking action on any NQIs in your for tax receipt preparation is March 31. processed in your accounts for income registered plan to minimize potential Some external issuers, such as mutual trusts, limited partnership units and tax penalties. Please consult with fund companies, mail tax slips directly split corps in April 2020, and will be a qualified tax advisor prior to to you. reflected in your statements. taking action. Foreign currency tax slips Average exchange rates (per Bank of Canada) If you receive a tax slip in a foreign 2015 2016 2017 2018 2019 currency, you will need to convert the amounts to Canadian dollars. U.S. Dollar 1.2787 1.3248 1.2986 1.2957 1.3269 The table to the right shows the British Pound 1.9540 1.7962 1.6720 1.7299 1.6945 average annual exchange rates Japanese Yen 0.0106 0.0122 0.0116 0.0117 0.0122 for various currencies that can be Swiss Franc 1.3286 1.3450 1.3189 1.3246 1.3352 used for your reference. Australian Dollar 0.9604 0.9852 0.9951 0.9687 0.9228 Hong Kong Dollar 0.1649 0.1707 0.1667 0.1653 0.1693 Euro 1.4182 1.4660 1.4650 1.5302 1.4856 All amounts are expressed in the number of Canadian dollars it would cost on average for the year to purchase one unit of the foreign currency. Page 3 of 4 Approximate Approximate Document/Tax Slip Mailing Online Information Reported Date Availability Registered RRSP Issued to report the value of cash or securities (in-kind contributions) contribution contributed to Registered Retirement Savings Plan (RRSP) accounts. receipt Mid-January Mid-January For the last 10 months of 2019, the receipts will be issued in mid-January. Late January Late January For the first 60 days of 2020, the receipts will be issued in late and daily and daily January and daily thereafter. thereafter thereafter RRIF/LIF/LRIF/ Late January Not available Details (i) the value of your assets at December 31, 2019; (ii) the RLIF/PRIF minimum amount that must be withdrawn; (iii) the maximum evaluation letter amount that can be withdrawn if you have a Life Income Fund (LIF) or a Locked-in Retirement Income Fund (LRIF) or a Registered Retirement Income Fund (RRIF) or a Prescribed Retirement Income Fund (PRIF) or a Restricted Life Income Fund (RLIF); and (iv) your desired payment amounts and frequency. T4RSP/RL-2/NR4 Late February Late February Issued to report withdrawals from RRSP accounts. All payments (RRSP withdrawals) from RRSP accounts must be included in your income. Relevé 2 slips for Quebec residents/NR4 slips for non-residents are issued. T4RIF/RL-2/NR4 Late February Late February Issued to report withdrawals from RRIF, LIF, LRIF, RLIF or PRIF (RIF withdrawals) accounts. All payments from the above plans must be included in your income. Relevé 2 slips for Quebec residents/NR4 slips for non-residents are issued. T4A/RL-1/NR4 Late February Late February Issued to report the receipt of Educational Assistance Payments (RESP withdrawals) by the beneficiaries of a Registered Education Savings Plan (RESP) during the 2019 calendar year and/or Accumulated Income Payments to the subscriber during the 2019 calendar year. Relevé 1 slips for Quebec residents/NR4 slips for non-residents are issued. Non-registered T5/RL-3 Late February Late February Issued to Canadian residents to report income of $50 or more on investments held in stocks, bonds, mutual funds or interest on credit balances during the calendar year. A Relevé 3 slip corresponding to the T5 slip is issued to Quebec residents. NR4 Late February Late February Issued to non-residents of Canada who received Canadian investment income. Both the gross amount of the income received and any Canadian non-resident taxes withheld are reported. Summary of Late February Late February Summarizes income received as well as charges to your account investment income for dividends owed, interest paid on debit balances and accrued and expenses interest paid on the purchase of bonds. The amount in the “Paid to You” column supports the figures reported on the T5. The amount in the “Paid by You” column may qualify as an investment expense on your tax return.
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