How to complete a T5?

8769 Views 2 Replies 3 Participants Last post by leslie, Dec 13, 2009

ykphil

Discussion Starter · Dec 13, 2009

This is my first post on this forum, and probably not the last...

I'm a newbie with little financial knowledge. Here is my question: I had a holding company with myself as the only director. This company (Company A) was a shareholder of another company (Company B) and received dividends from Company B. I formally closed the company earlier this fall and paid out all monies in the company in the form of dividends to myself. Now I am in the process of preparing the T5 and the report to CRA and and I am unsure about how to do this. Which boxes in the T5 form should I put the amount paid to myself? What about the other boxes? I understand that I also have to submit a final income tax declaration T2.

Any help would be appreciated.

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leslie

· #3 · Dec 13, 2009

I'm basically a do-it-yourselfer but in case I also say "pay an accountant". The fact that you have not filed / prepared the last tax return means to me that you don't know the tax-values of certain accounts within the two companies. Without knowing that, you cannot know what the check represented.

Use the opportunity to get a quick once-over of how you handled the inter-co dividends and withdrawals in the past. You might have a deductible business investment loss. You may be able to take out money as repayment of SH loan or equity capital.

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