Last updated: February 13 2008

New Handbook On Securities Transactions

Tax and financial advisors will be interested in CRA s new handbook on securities transactions. The handbook discusses who has to file a T5008 information return to report securities transactions, including some interesting situations like:

  • What are the reporting rules for a hot topic in today s marketótraders in precious metals? (did you know, pawnbrokers who buy gold rings don t have to file a T5008 slip)
  • What are the tax reporting rules for investment counsellors? (they usually use the services of a broker or agent in serving clients but must file form T5008 if they act as agents for their clients in buying and selling securities)

The guide goes on to explain the T5008 is not required to report the exchange of old shares for new shares occurring in the course of a reorganization of the capital structure of a corporation as long as the exchange meets the requirements of section 86 of the Income Tax Act, and no consideration other than new shares is receivable. Among other topics, reporting rules for the dissolution and continuation rules for partnerships are also discussed. For more information click here.