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Taxes

It depends on the type of accounts you have with Zag Bank. Below is a summary of the tax documents you will receive:

Non-Registered Accounts

Account Type(s) Tax Receipt When What you should know

Zag Savings

and

Zag GICs

T5 Mailed the first week of February of the following year You will receive a T5 only if the interest earned for the calendar year is $50 or more.
NR4 Mailed the first week of February of the following year For non-residents of Canada, you will receive an NR4 only if the interest earned for the calendar year is $50 or more.

 

Registered Retirement Savings Plan

Account type(s) What When What you should know

Zag RRSP Savings

and

Zag RRSP GIC

RRSP contribution receipt
  • 1st 60 days of the year
 
  • Balance of the year

 

 

Mid-March of the same year

Mailed the first week of February of the following year

You will receive an RRSP contribution receipt if you made any contributions in the current tax year.

T4RSP Mailed the first week of February of the following year You will receive a T4RSP only if you make a cash withdrawal in the current tax year.

 

Tax-Free Savings Accounts

Account type(s) What When What you should know

Zag Tax-Free Savings 

and

Zag Tax-Free GIC

Not Applicable Not Applicable Your Tax-Free accounts do not qualify for a tax receipt as all interest earned on your account is tax-free

 

Possible tax implications may apply.  There are a number of factors that will be considered.  It’s always a good idea to consult your financial planner or a tax professional for advice. 

For more information, please check with Canada Revenue Agency (CRA) at cra-arc.gc.ca.

It’s easy: visit zagbank.ca/forms and download the Beneficiary Designation Registered Plan form. Then, mail the (completed and signed) form to:

Zag Bank
120-6807 Railway Street SE
Calgary AB  T2H 2V6

Or, you can scan and email it to gicprocessing@zagbank.ca or fax it to 1-877-252-2244.

If you plan to enhance your income-earning potential or want to train for a new occupation, the Canadian government allows you to withdraw (tax-free) a maximum of $20,000 from your RRSP to finance full-time training or education for you or your spouse/common-law partner. You can withdraw up to $10,000 per calendar year, until January of the fourth calendar year, after the year you made your first Lifelong Learning Plan withdrawal. The money must be repaid to your RRSP, usually in yearly installments of 1/10 of the total amount you withdrew.

For more details and to see if you qualify for the LLP, visit cra-arc.gc.ca.

If you are buying or building a qualifying first home, the Canadian government allows you and your spouse to withdraw (tax-free) up to $25,000 per person from your RRSP(s) to buy or build your first home. Under the Home Buyers’ Plan, you have 15 years to repay the money to your RRSP starting the second year, after the year you withdraw funds.

Learn more about RRSP withdrawals and see if you qualify for HBP, at cra-arc.gc.ca.

Like all Canadian financial institutions, Zag Bank is required to issue a T5 Statement of Investment Income slip on your behalf each year – that is, if the interest earned by an investment (e.g. your Zag GIC) is greater than $50. Keep in mind that, even if it is less than $50, you must still report this interest on your annual income tax return.

For more information, please check with Canada Revenue Agency (CRA) at cra-arc.gc.ca.

Zag Bank is required to provide tax slips to Canadian residents who have received or earned interest of $50 or more in any given year.

This also applies to longer term GICs (over 1 year) where you have chosen to have your interest paid out at maturity. During the term, your GIC is still earning interest which is credited to your GIC (but not paid-out) every year on your anniversary. If the interest earned is $50 or more in the calendar year, it will be reported on a T5 tax receipt.

You will not receive a tax slip if the interest earned on your Zag accounts is less than $50. This applies to non-registered Zag savings accounts and non-registered Zag GICs. However, you must still report the interest income to Canada Revenue Agency.

We recommend that you consult a tax advisor for reporting in your particular circumstance. Generally, each spouse reports their share of the interest from the joint investment based on how much each contributed when they bought the GIC. 

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