Is Construction your Primary Source of Business Income?

The CRA is increasing their focus on non-compliance within the construction industry concerning the payment of subcontractors. For most contracting companies to remain compliant with the CRA regulations they must submit T5018 slips.

What is a T5018 Statement of Contract Payments?

A T5018 is an information return which a payor (contractor) must submit to the CRA reporting amounts paid to payee (subcontractor). If you are an individual, partnership, trust, or corporation involved in construction activities that represent 50% of your business’ income-earning operations, you must adequately submit T5018 information returns and slips.

As a construction company who makes payments to or credits a subcontractor (whether by cheque, cash, barter, or offset against an amount owing), ensure you always record the required information necessary to complete your T5018. T5018’s are due six months after your year-end.


There are major penalties for non-compliance!

Construction companies who plan to avoid taxation by concealing payments to subcontractors are committing a criminal offence. If the contractor is caught and criminally charged, they can face fines and a maximum penalty of up to 200% of the tax they tried to avoid.

To learn more contact a GMSPC representative or CLICK HERE

Add Comment

stay friends

We believe your accounting firm should be able to look beyond the financial statements and pass on any observations concerning improved and effective operations and structure.

Recent Blog Posts

Daniel Faubert 26.03.2019 in Blog

Ontario’s construction industry has grown by more than 50 percent since 2002 and employs over 400,000 workers in Ontario alone. […]

Daniel Faubert 18.04.2019 in Blog

The Ford government unveiled their first budget on April 11th which aims for balance after the first term. Below are […]