In 2021, a new client, aged 26, sent me a paper T5 slip showing taxable amounts, eligible dividends and associated tax eligible tax credit.
His name was on the slip but no SIN# ; it was mailed to his parents address.
I filed his return with the T5 income even though it wasn’t on his CRA account at the time.
(figuring it would show up later some time with Covid-19 slow down).
Return was processed by CRA in line with the filed return.
Checking his CRA account today, I still don’t see that T5 for 2021 (or 2022). When I inquired about it, he informed me the income and dividends’ credit was claimed by his father in 2021, as supposedly the shares were bought in his name when he was younger.
I’m not a slip issuer but is this a realistic scenario?
If it has no SIN on it how is the CRA going to know which account to apply it to? That part I have no problem with. I’d ask further about the story behind what what happened but if he’s over 18 the income should not attribute back to the father I wouldn’t think. Could be if the father paid for the shares and gets the dividends as the beneficial owner although if that is the case I’d really want to know why it was set up that way in the first place.
After some detective work, involving some insurance company’s demutualization in 2021, policy owners were issued shares.
T5s were sent to policy owners with no explanation (from what I understand) as to why, when and how. Only the T5 slip, with a note saying "If your SIN# is missing please contact our office at… " (good luck with that … as I discovered).
Father and son each had their own insurance policy with company - hence each one received the related T5. (and either a cheque/direct deposit).
Gotta love it…
And the people receiving had no idea this was happening. One of my clients didn’t have his copy when I filed last year, and it wasn’t available through AFR so we missed it. Filed a T1ADJ for it this year.
As at @laurie mentioned, how could one expect the CRA to make the connection with just name and address …
Just wondering if the same will repeat for 2022 … so far nothing on AFR or paper slip either.
I really expect this to be a one time benefit that they received when they demutalized. I did this client’s tax return for 2022 and only had the T5 for 2021.