By Nizam Shajani, CPA, CA, MBA
From time to time the government imposes filing requirements on certain industries. The T5018 statement of contract payments is one such requirement placed on the construction and related industries.
If you are an individual, trust, partnership or corporation involved in the construction industry, where construction is your primary source of business income and you pay subcontractors for construction services – you must file a T5018. This includes organizations where more than 50% of business income is earned from construction activities.
If you are building something outside of the country, note the T5018 filing requirement also applies to Canadian residents who are paying Canadian residents for construction services outside of Canada.
The form only needs to be completed for subcontractors who were paid more than $500 in a reporting period.
The reporting period for the T5018 may be completed based on the calendar year or the corporation’s fiscal year. Once one type of reporting period has been selected, no changes can be made without written approval from CRA.
Information included on the T5018 include the following:
- Reporting period
- Amount of payments made to the contractor
- The contractors’ business number or social insurance number
The form also details your name and business number as the payer.
The filing deadline for a T5018 is six months after the last day of the reporting period chosen. Late filed T5018s result in penalties of $25 per day with a minimum of $100 and to a maximum of $2,500.
Contact the Shajani LLP today to get your T slips filed.
This information is for discussion purposes only and should not be considered professional advice. There is no guarantee or warrant of information on this site and it should be noted that rules and laws change regularly. You should consult a professional before considering implementing or taking any action based on information on this site. Call our team for a consultation before taking any action. © 2021 Shajani LLP