How are distributions reported on income tax returns?
National Bank mutual funds issue supplementary T3 and Relevé 16 (Québec residents) tax slips which contain income tax information. These tax slips are only issued for non registered accounts. Distributions made to registered accounts (RRSPs, RRIFs, LIFs, LIRAs, DPSPs) are not taxable as long as they remain in these registered accounts. National Bank Securities does not issue tax slips unless the distribution amount is equal to, or greater than, $100. Unitholders must still report distributions on their tax return even if they are less than $100. The distribution amount is indicated in the unitholder’s account statement. These tax slips do not show the amount of capital gains or losses realized from the sale or exchange of National Bank mutual fund units. See section on “Tax considerations of redemptions or exchange of National Bank mutual fund units” to learn more about the tax treatment of such gains. The following example shows how and where unitholders are to report distributions on
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