Tax info for Corporations is reported on a Canada Customs & Revenue Agency T5
Form. The T5 Form is produced by the broker and mailed to the investor no later than February 28. Please contact your broker regarding T5 enquiries.
Tax info for Trust Funds is reported on a Canada Customs & Revenue Agency T3
Form. The T3 Form is produced by the broker and mailed to the investor no later than March 31. Please contact your broker regarding T3 enquiries.
TYPES OF INCOME EARNED
Capital gains
are taxed at much lower rates than interest income, dividend income and foreign
source non business income. The capital gains inclusion rate was 50% for 2009.
The T-3 or T-5 you receive from your investment dealer will show the breakdown
of the capital gains received from any of the Quadravest products.
Eligible Canadian Dividend Income
received from Canadian companies is taxed at a much lower rate than interest
income. This is because the corporation has already paid tax on its earnings
before paying a dividend to the Fund. On your tax return, you actually report a
grossed-up dividend and then claim an offsetting dividend tax credit. The T-3
or T-5 you receive from your investment dealer will show the breakdown of the
dividend income received from any of the Quadravest products.
Return of Capital (Non Taxable) distributions received must be used by the investor to
reduce the adjusted cost base (ACB) of their shares/units. This will impact the
capital gains realized by each investor upon any future dispositions of the
shares/units. As an example, if a 50 cent per unit non-taxable distribution was
received during the year, the investor would reduce the cost base of each unit
by 50 cents.
