NOTE: Missing Tax Information Very Important
Every year there are changes at the CRA and potential tax filings. This year there is a great deal more information being reported on the CRA website. I imagine this is going to lead to a crack down on things that have not been reported in the past as the CRA endeavours to collect more tax revenue. They can go back and reassess files for previous years.
Please ensure you have all your slips (T4s, T4A, RRSP, T3s, T5s and such tax information. If you signed a T1013 with me I can access most of your information that has been reported to CRA. But not all information is shown or not the complete information. So everything still must be checked. Even with the new auto-download feature, not all information is showing up.
Securities Disposed of:
This year I am finding a lot of this with many clients not being aware of any securities being disposed of. There appears to be some communication issue but ultimately you are responsible to provide the information for securities disposed of. Securities include stocks, bonds, mutual funds etc. If you have a managed account with a broker or financial institution this may apply to you even if you are not aware of it. They may be trading securities in your account. That can result in capital gains or losses.
If you deal with anyone who provides advice or manages your finances there is a good chance that this may apply to you. Please talk with your financial advisor. Some financial institutions provide better information than others. If you do your own trading you will need to come up with the information yourself.
Banks and financial institutions must report to the CRA any securities disposed of shown as a form T5008. If they only show the amounts sold you will pay 100% tax on that amount. You may need to get a Statement of Realized Gains or Losses sometimes called Securities Disposed of or find all the slips when the securities were bought for the cost/book value, that could go back years. Sometimes it will show on an annual statement. They may give you a song and dance about the form number or name but they do know what this means and that you need to disclose it to Canada Revenue Agency. If they do not know, then you are likely dealing with a novice and perhaps you should consider asking to speak with someone senior who does know.
These firms make a great deal of money and must notify the CRA for anything sold. But for some reason they do not have to provide the cost or book value details. They should at least do the same for you including a providing a statement showing the cost or book value.
Failure to report this can result in fines and interest costs being levied by the CRA. This must be part of their mission statement these days.