A T5018 is a T-Slip that is provided to subcontractors in the construction industry detailing how much they have been paid. It is similar to a T4 Slip that reports the amount of employment income that a taxpayer has received.
One of Canada Revenue Agency’s (CRA) strategies to combat the ever-growing underground economy is to require construction businesses to file an annual T5018 return.
All companies, individuals and corporations with construction as their primary business activity are required to file a T5018 annually for each subcontractor they have made payments to in the amount of $500.00 or more.
The CRA uses this information to identify subcontractors that do not file returns, report their full income or are not registered for GST / HST.
If you have any questions on T5018 forms, please give us a call.