Do I have to issue myself a T5 Slip if I took dividends from my company?

Question:

If I am the sole shareholder and I receive dividends from my corporation, would I be required to prepare a T5 slip?

Answer:

Absolutely yes! A T5 slip is required to report the dividends paid to you in the calendar year.

If your company has a year-end other than December 31, you would still report the dividends paid to you in the calendar year. For example, assume that your company’s year-end is June 30th, 2012. You received $25,000 of dividends on June 25th and another $25,000 on July 31st, 2012. The total amount you would include on your 2012 T5 Slip is $50,000.

ABOUT THE AUTHOR

ALLAN MADAN

CA.CPA.CGA

Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.

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