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Do you know about Construction Contract Payment Reporting


March 6, 2010
By Anthony Capkun

DID YOU KNOW? Payments made to subcontractors for construction services must be reported to Canada Revenue Agency (CRA) using a reporting system called the Contract Payment Reporting System.

Who needs to report? Individuals, partnerships, trusts or corporations
earning more than 50% of their business income from construction
activities.

What needs to be reported? Payments totalling $500 or more (including
GST/HST) per reporting period made to subcontractors for construction
services or for mixed goods and services when there is a service
component of $500 or more. Goods-only payments do not have to be
reported.

When do I report? Businesses can report payments on a calendar- or
fiscal-year basis. They must file the return within six months after the
end of the reporting period to which it pertains.

How do I report? Contractors can report payments made to subcontractors
by completing the T5018 Information Return, which includes the T5018,
Statement of Contract Payments, and the T5018SUM, Summary of Contracts
Payments. These are available online in a format that allows a
contractor to enter the required data, and can then be printed for
submission to CRA. Contractors can also submit their own form, provided
it includes all of the information required, along with a list of the
total payments made to each subcontractor.

Completed information should be sent to:

Ottawa Technology Centre
875 Heron Road
Ottawa ON K1A 1A2

CLICK HERE for more information on the Contract Payment Reporting
System.