Duca T5 error | DUCA Credit Union | Discussion forum

HISAhopper said
Duca informed me that the was small error on the their T5 related to loyalty bonus (my guess it is the $14 interest/bonus on the special account). They said they are working with CRA to resolve the issue and the amended T5 will be sent out and advise me to contact CRA if I am to file my tax return before Apr 30.

Apr 30 is the dead line for filing, it sounded like their amended T5 won't be able to make it before Apr 30. It was 45 min to 1.5 hrs waiting on the phone as i called CRA recently and am very discouraged to have to go through that again.
I am thinking of using the existing T5 to file knowing there is error in it.
Any advice?  

I had already filed my income tax return by the time I received the email from DUCA. I seem to remember the email stating it would not have a major affect on my income taxes so I am not concerned about it.

The amount would have appeared on your Jan 2020 statement as "Class A share - Dividend".
There is a line on the CRA form for Other Interest etc. I would try putting the extra bit there.
You could also try just bumping up your T5 from DUCA, but there is the risk that CRA would adjust it downwards when assessing your return, in the absence of a revised T5.

Our accountant, who is obviously not very familiar with credit unions, tried to count it as an "eligible dividend", with dividend tax credit, and I had to correct him. Beware! Pending...

I am expecting a refund and don't want to have to fiddle around sending them money later so am trying to include it in my return. My guess is that by the time they assess my return the new T5 may be available and will provide the reference point for CRA. They may issue a reassessment, but it shouldn't involve paying extra money.

I suspect the problem may have come about when they did a major upgrade in their computer systems last summer.

The only sure thing is that you'll have to pay the tax on it one way or another!

They sent me a e-mail saying they would send out the amended T5's this week and should arrive before April 30.
Checked my T5 in online banking..was not amended yet...so we wait.

frizun said
They sent me a e-mail saying they would send out the amended T5's this week and should arrive before April 30.
Checked my T5 in online banking..was not amended yet...so we wait.  

I recd the snail mail today dated Mar31 about it being wrong lol

I also checked my 2019 T5 and other than box13 interest, I dont see anything re this interest bonus member thingie. Was it part of the box13 ?

Loonie said
The revision should show an increase in Box 13.
If you have a DUCA T5 from the previous year, you should be able to figure out that it was included then.  

I did not check the math if they calc my interest correctly. I just did quick top of the head calc to see if any promised bonus is paid out. So as long as what they give is more than what I estimate, that is good enuf for me.
I rely on the collective wisdom here to point out if any FI or CU interest calculation is funky and then check it if it applies to me too 🙂

Did a deeper dive and noticed the following:

They did not generate a Jan 2020 statement in my account so cant compare. Not sure what is their criteria for generating statements as I have a few missing ones under estatement.

In Mar 2021 statement, my class A bonus share acct balance goes up by $4.
But they also added a new account called Daylight Savings account and somehow there is $99 in it. No clue what this account is as I did not even know it exists until I check today.
Does that mean for 2020, I earned a total of $103 as some form of bonus ? That seems generous.
So I imagine they are missing the $99 in the T5 since it is something new they create maybe ?

What a mess!

My January (and Feb and March) statements for 2020 are no longer available either, but, when they were doing the changeover of computer systems last summer, I printed out everything I could get my hands on as I was afraid some of it might disappear, so I do have the statement.

I suggest you compare what is in your Class A Bonus Shares account at end of 2019 with whatever it shows at the earliest available point in 2020. The difference between them (never mind a few pennies interest) will be the amount in question. But you could just wait for the new T5.

I have no idea what a Daylight Savings Account is. This one doesn't appear on my statement.

They have far too many accounts. They spring up unbidden - and never leave! I have been meaning to phone them and see if I can get rid of one or two of them but figured they'd be swamped with calls now.

As far as I know, FIs must issue a T5 when there is at least $50 income. In the situation with DUCA, the bonus shares may be less than that, but the total including regular interest is likely more, so it must be included.

HISAhopper said
I received the amended T5 yesterday with exactly $14 added on to interest income which is the amount in the Class A account.
I tried if I can transfer it to other account but to no avail. It is my money as I pay interest on it, why can't I use the money anyway I want?
if I want to close all DUCA accounts will I be able to collect the $14? If no, then to be fair DUCA must reimburse the interest that I pay to CRA.
Any thought?  

Your typo of paying "interest" should, of course, read paying "income tax".
Here's my understanding of the situation. Their Class A bonus shares dividends are shown as interest income, not dividend income, for tax purposes. The full amount is taxed in the year posted, but is not available to the member. The member can only redeem a portion, starting in year 2 at 50%, year 3 at 60%, etc. 100% can only be redeemed if the member waits 6 or 7 years! If redeemed at less than 100%, the member forfeits the balance, but the member has already paid tax on the full amount when posted initially! I believe the only recourse to adjust would be to treat the uncollectable portion forfeited as a deduction from all other interest income in the year forfeited or treat that amount as "bank charges, etc."