| Q. |
What is a T5 slip for Ontario Savings Bonds?
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| A. |
A T5 slip for OSBs reflects the interest payment(s) made on June 21 for Annual Interest bonds, or the
accrued interest earned on Compound Interest 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.
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| Q. |
Is a T5 tax slip generated for Compound Interest bonds?
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| A. |
Yes. A T5 slip is generated for Compound Interest bonds. The T5 information reflects the accrued interest
earned in the year. T5 slips are issued annually by the Registrar and are mailed directly to the
bondholder's address by February 28 of each year.
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| Q. |
Is a T5 slip generated for Annual Interest bonds?
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| A. |
Yes. A T5 slip is generated for Annual Interest bonds. The T5 information reflects the interest payment(s)
made on June 21. T5 slips are issued annually by the Registrar, Computershare, and are mailed directly to
the bondholder's address by February 28 of each year.
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| Q. |
I bought Ontario Savings Bonds during the last campaign in June. Why didn't I get a T5 slip?
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| A. |
Annual Interest Bond
Interest is payable annually on June 21. This means that if you purchased a Bond in June 2007 and did not
redeem it in December 2007, you will receive your first interest payment on June 21, 2008, and will not
receive a T5 slip until February 2009 indicating the interest paid on June 21, 2008.
Compound Interest Bond
Interest on Compound Interest bonds is compounded annually on June 21 and is paid at maturity or when then
bonds are redeemed. If you purchased a Compound Interest Bond in June 2007, and did not redeem it in
December 2007, you will not receive a T5 form until February 2009 indicating the interest earned for
the period from June 21, 2007 to June 21, 2008.
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| Q. |
If the registered bondholder is a minor, who claims the income tax?
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| A. |
For tax-related inquiries, callers should contact Canada Revenue Agency directly at 1-800-959-8281.
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| 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?
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| 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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