17 Canadian tax & accounting terms starting with T
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
T1 Return
The T1 is the personal income tax return every Canadian individual files annually to report income, claim credits and deductions, and settle tax with the CRA.
T2 Return
The T2 is the corporate income tax return every incorporated business in Canada must file annually, even if it had no activity.
T2125 Statement
The T2125 is the form self-employed individuals use to report business or professional income and expenses as part of their personal T1 return.
T3 Slip
A T3 slip reports income allocated to a beneficiary from a trust or estate, so the beneficiary can report it on their personal tax return.
T3 Trust Return
The T3 is the income tax return a trust or estate files annually, due 90 days after its tax year-end, reporting income earned and allocations to beneficiaries.
T4 Slip
A T4 is the slip an employer issues each employee summarising their employment income and the income tax, CPP and EI withheld during the calendar year.
T4A Slip
A T4A is a tax slip reporting income other than regular employment wages, such as fees paid to contractors, pension income, or certain scholarships and benefits.
T5 Slip
A T5 is a tax slip reporting investment income, such as dividends, interest and certain foreign income, paid to an individual during the year.
T5013 Partnership Return
The T5013 is the information return certain partnerships file to report their income and allocate each partner's share, which partners then report on their own returns.
Tax on Split Income (TOSI)
TOSI rules apply the top marginal tax rate to certain income, mainly dividends, paid to family members who are not genuinely involved in the business, curbing income splitting.
Taxable Benefit
A taxable benefit is a non-cash perk an employer provides that the CRA treats as employment income, added to the employee's pay and reported on their T4.
Taxable Income
Taxable income is the amount of income actually subject to tax after all deductions, the figure your tax rate is applied to, which differs from both gross income and accounting profit.
Taxable Supply
A taxable supply is a good or service subject to GST/HST (at the standard rate or zero-rated), on which the supplier can claim input tax credits.
Term Loan
A term loan is a lump sum borrowed and repaid over a fixed schedule of payments, typically used to finance long-term assets or major investments.
Terminal Loss
A terminal loss is a deduction available when a CCA class is emptied of all assets but still has an undepreciated balance, meaning the assets depreciated faster than CCA allowed.
TFSA
A Tax-Free Savings Account lets Canadians invest within an annual contribution limit and earn investment income and growth completely tax-free, even on withdrawal.
Trial Balance
A trial balance is a report listing the ending balance of every account in the general ledger, used to check that total debits equal total credits before preparing statements.
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