# Grump: Why does it take investment firms until March 31 to issue T3s....



## houska (Feb 6, 2010)

They have the distribution and account holdings data as of December. They have to, otherwise they couldn't make the distributions.
I'm sure that there is plenty that needs fixing in terms of accountholder addresses etc, esp for investments through discount brokerages, but
a) They should fix the process if it's a mess
b) They should start it the previous fall, since many investors don't touch their holdings for a long time; and
c) They seem to be able to issue T5s by the Feb 28 deadline

This is more of a grump/vent than really a question, but I'd be happy to read any explanations on why it's actually more complicated to feel less grumpy


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## twa2w (Mar 5, 2016)

Because they can


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## AltaRed (Jun 8, 2009)

T5s are easy. The information is clean. It is a lot harder for Trusts that have to pass everything through to unitholders until they have done their financials, in essence, their year end. It is especially so if they also have investments the stream through income and wholly owned subsidiaries. How many corporations issue their 'audited' financials by the end of Feb?

I have had to go through the Trust guide for the 2015 tax year for a testamentary trust to generate T3 tax slips, and this is the 'same guide' as is used by mutual funds trust companies and ETFs to generate their T3 tax slips. Albeit my work on a testamentary trust is just a needle in size compared to the haystack that is a major trust. It IS complicated and I now have an appreciation for what they probably go though.

Could they do it faster? No doubt they could but I don't have the information to make a case for it.


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## james4beach (Nov 15, 2012)

I hate the T3s too and they stress me out because they always come so late


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## Eclectic12 (Oct 20, 2010)

Where one knows the T3s will be late ... why stress?

That seems harmful to you and does nothing to them or the government.


I usually have everything else wrapped in the tax software by then so it does not delay the return by much.


If it is that bad ... put T3 type investments in a registered account and keep the T5 the taxable account.

Cheers


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## AltaRed (Jun 8, 2009)

Eclectic12 said:


> Where one knows the T3s will be late ... why stress?
> 
> That seems harmful to you and does nothing to them or the government.
> 
> ...


Agreed. My tax return is already done (in the tax software) except for the, most likely, 2 T3's, one from each brokerage. Five minutes of data entry circa Apr 5-10, and that is done for the year. Don't care really when it happens in April as long as it is not Apr 30th!

It may be a bit more stressful for James since, if he files a US 1040 or 1040NR, he needs to have his data input and US taxes paid by Apr 15th. I faced the same issues all the years when I was an ex-pat filing 1040's. Just means that his US tax preparer needs to be aware that a few data inputs are coming within the past week before the button is pushed to generate and file the return.


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## P_I (Dec 2, 2011)

Trusts have 90 days from their year-end to file their tax return and issue T3 slips. Given that most trusts have December 31 year-ends, this makes the deadline for issuing T3's the end of March. In the case of mutual funds and ETFs, I would imagine that completing and filing their trust return isn't a simple matter and takes a significant part of the 90 days allocated by CRA.


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## OptsyEagle (Nov 29, 2009)

P_I said:


> Trusts have 90 days from their year-end to file their tax return and issue T3 slips. Given that most trusts have December 31 year-ends, this makes the deadline for issuing T3's the end of March. In the case of mutual funds and ETFs, I would imagine that completing and filing their trust return isn't a simple matter and takes a significant part of the 90 days allocated by CRA.


Except that the lion's share of all the trusts, that most of us own, have completed that process, as evidenced by their CDS filing, by the end of February. So it is the broker who is taking their sweet time in getting them to their final destination.


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## AltaRed (Jun 8, 2009)

The trusts get the data to the brokerage which then issues the T3 slips. IIRC, legislation was passed a year or two ago requiring the trusts to get their data to the brokers by mid-March, i.e. March 15th. IIRC2, this was in response to complaints from financial institutions that they were having trouble getting T3s out the door by Mar 31 when that mid-March requirement from the trusts was not in place AND it often resulted in chaos and revised T3 slips coming out into late April AFTER many taxpayers had already filed. FWIW, I would rather they get the T3 slips right in the first place than to issue revisions at a later date.


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## RBull (Jan 20, 2013)

I received my T3 several weeks ago. 

In the covering letter form the institution it refers to legislation stating T3s must be issued by Feb end. It also states CRA does not prohibit amendments happening anytime before end of April. 

I don't get too fussed about this stuff but I'm agreement with the OP things should be tighter and earlier, and AltaRed yes, I would rather get them right from the start. 

I haven't started our taxes but plan to do them about 2 weeks from now, as late as I can before we leave for a lengthy vacation.


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## james4beach (Nov 15, 2012)

AltaRed said:


> It may be a bit more stressful for James since, if he files a US 1040 or 1040NR, he needs to have his data input and US taxes paid by Apr 15th. I faced the same issues all the years when I was an ex-pat filing 1040's. Just means that his US tax preparer needs to be aware that a few data inputs are coming within the past week before the button is pushed to generate and file the return.


Actually I do them earlier, because my tax preparer wants to see all my material by March 15. I've already drafted my US and Canadian returns and sent them to my US-Canada accountant. The expert also earlier advised me to get rid of all Canadian non-reg ETFs and mutual funds so I didn't get any T3s this year.

For my parents, I calculate T3 estimate using the iShares tax characteristics document and they use those estimates until the real ones arrive. My dad got in trouble with the CRA one year when the T3's arrived late, and he did not include them, which omitted many capital gains distributions. This year I warned him (and posted this thread to warn everyone) that some big taxable capital gains distributions are coming from XIU and XIC.


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## james4beach (Nov 15, 2012)

I should have emphasized my point from above. XIU and XIC made some big capital gain distributions this year and (I think) will generate big amounts on the T3, so definitely do not over-look your T3s.


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## AltaRed (Jun 8, 2009)

james4beach said:


> Actually I do them earlier, because my tax preparer wants to see all my material by March 15. I've already drafted my US and Canadian returns and sent them to my US-Canada accountant.


That is standard practice because they have a ton of them to do between then and Apr 15th. I used to send my data book in with asterisks on data I did not have..... with a note.. data to follow when available.

Not to criticize but not sure how people can 'forget' about T3s. Can't help but see them in the mail circa Apr 2-5 or so.


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## james4beach (Nov 15, 2012)

For people who like getting these things done earlier, it's frustrating that they can't actually complete their taxes until these T3s saunter in, some time in early April


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## houska (Feb 6, 2010)

As the OGP (original grumpy poster), only fair to note the t3s I was waiting for arrived in the mail on Friday - a week before the deadline.


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## Eclectic12 (Oct 20, 2010)

james4beach said:


> I should have emphasized my point from above. XIU and XIC made some big capital gain distributions this year and (I think) will generate big amounts on the T3, so definitely do not over-look your T3s.


Good think I have these in registered accounts and don't have to wait for the T3.


For the record on the T3 timing, I have an email saying my was made available online probably on the 25th. The email is from the 29th but I have noticed in the past that I have found the documents online then the email shows up a couple of days later.


Cheers


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