What is T3/T5 Tax Slips?

Example

You hold XEQT.TO in a non-registered account at Wealthsimple. In February/March, you receive a T3 slip showing distributions received: capital gains, Canadian dividends, foreign income, and return of capital. Each type is taxed differently. Your broker prepares these automatically — you just report them on your tax return.

Why It Matters

T3 slips often arrive late (late March, sometimes April), which can delay your tax filing. In a TFSA or RRSP, no slips are issued since income is not taxable. This is a practical advantage of registered accounts.