Hi all,
How do we check what exactly constitutes construction for the purpose of preparing forms T5018?
Thanks in advance for any help.
Try the guide as a starting point
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Dan Chun, CPA, CGA
PARTNER
Client File Upload
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If the first two digits of the North American Industry Classification System (NAICS) code for the client are 23 the Canada Revenue Agency expects a T5018 information return if the business engaged any subcontractors.
All construction NAICS codes are between 236000 and 239000.
Since you are required to report the NAICS code on both the T1 and T2 return it should be fairly easy to tell if a T5018 return is expected.
The T2 software actually gives you a diagnostic prompt on the Info screen in the Business Activity area regarding subcontractors if your main revenue generating business activity is construction.
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Thanks a lot.
That assumes the NAICS is correctly reported. 
Many are not, it would appear from experience, especially with smaller and multiple-operation businesses.
Also a curiosity: landscaping was deemed not to be “construction” in a case I brought a decade or more ago as there was no physical attachment to a “structure”. Even deck-building. Not sure if that still holds though.
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