My client’s employer issued T4A and reported dividend payments & redemption in box 28 of T4A. Does it go on line 130 of T1 as software doing or it should be reported some other way?
The client may have it wrong. If it actually was a dividend/redemption, it should be reported as a dividend and the slip re-issued. You’ll need to look at the documentation behind the transaction to know for sure.
Thanks for helping, attached is the sheet came with T4A
T4A Explanation.pdf (25.5 KB)
Difficult to see what actually happened - more likely should be on his T4 (See RC4120 Box 14 for EBP)
“Include payments out of an employee benefit plan (EBP) and amounts that a trustee allocated under an employee trust.”
It’s hard to say what the “Dividend” payments are. They could be actual dividends with tax withheld or it could be some kind of profit-sharing “dividend”, in which case a T4-PS might be in order. The redemption certainly looks like a share re-purchase which is taxed as a dividend and should be reported as such. The documentation to look at should be whatever is behind these payments. This document doesn’t really tell you alot upon which you can rely.
You’re gonna have to invest in a little ‘get to know the client’, and so find out what these payments actually are…
Is it from a coop or a credit union? What they call a “dividend” is usually interest on the membership share account (credit union).
Never mind me. I just looked at the T4A explanation and that’s a funny beast… not too sure what I’m looking at.