Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: aggregating of T3 slips by a dealer/nominee
Position: no objection to aggregation
Reasons: the Act does not require it
August 4, 1995
M. L. Staples, Chief Trusts Section
Information Returns Section
L. Holloway
Attention: Joe Hartwick (613) 957-2104
951476
T3 Supplementary Slips
This is in reply to your memorandum dated May 31, 1995, requesting our comments on a proposal put forth by XXXXXXXXXX regarding the filing of T3 supplementary slips.
In particular XXXXXXXXXX had asked whether the Department would allow a dealer/nominee (such as themselves) to prepare and issue one T3 supplementary slip for each client investing in mutual funds through them as broker, as opposed to having the trustees of the funds do so. Their request arises from an effort to alleviate the record keeping burden and to reduce the costs associated with sending out multiple T3 supplementary forms to the same investor. Under this proposal each mutual fund trustee would issue the dealer a T3 supplementary covering all the income earned by units in the fund that were held in the dealer/nominee's name on behalf of each of the dealer's clients. The dealer would then aggregate all such T3 supplementaries received and produce a single T3 supplementary, for each client/individual investor, consolidating all the income earned by each investor from all the mutual funds invested in during the year by the dealer on the investor's behalf. The client would also receive an analysis of income received on a fund by fund basis so that an audit trail would be maintained.
XXXXXXXXXX we have no objection to the dealer/nominee preparing and issuing the T3 supplementary slips, if and only if the dealer is acting in a fiduciary capacity or in a like capacity as required by Regulation 204(1) of the Income Tax Act. Where a dealer is also the nominee (i.e. the registered owner of the units) we presume this fiduciary relationship exists.
Your memorandum also asked for our comments on the legal aspects of combining the income from several sources onto one T3 supplementary slip. As the regulations do not specify that separate returns must be prepared for each source of income, the preparation of one T3 supplementary combining income from several sources would satisfy the requirements of Regulation 204(1).
Therefore, we are in agreement with the Audit Directorate and DELPAC and have no objection to the proposal presented by XXXXXXXXXX.
T. Murphy
Section Chief
Trusts Section
Manufacturing Industries, Partnerships
and Trusts Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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