t5 slip

[dux]

I will be cautious if anybody offers me 10% per year return, let along 17.5% per month

[Thalo]

Lookup Ponzi Scheme.

Maybe the OP is a principal in the whole scheme?

Seriously, 17.5% interest per month is not an investment, it's a scam, and probably you're in on it. You haven't told us what the person running this scheme actually does to make the return that he uses to pay the investors, and I can respect that, but what could he possibly be doing to generate such a ridiculous rate of return? The most profitable companies in the world can't take $1000 and turn it into $2100 the next year on a consistent basis. Real estate prices in Calgary during the boom over the past 5 years haven't even yielded a return anywhere close to that.

[taile77]

Hello Everyone,
I found an investment company that has been paying 17.5% interest per month for the past 8 months. I have never cashed in and just kept the money rolling over every month. They said that they will be issuing T5 slips soon. What does this mean? Does this mean that i have to pay taxes on money that i have not actually received? I am unable to pull any money out of this company for the next 6 months. The total amount of interest that i have made is HUGE and i will not be able to afford to pay taxes on this amount. I thought that you dont pay taxes unless you actually receive money... is this wrong or am i literally screwed?

T5 slips are slips that a corporation issues to their investors for any dividends or interest paid by the company. You use this slip similar to how you would use a T4.

As for the taxes on the interest earned, generally, you are taxed on what have been accrued by you regardless if you have received the cash or not. Only in a few cases that your interest would not be taxed until withdrawn (ie. RRSP). In your case, it would be interest reinvested and will be taxed on all amounts reinvested. The company that you invested in will report all amounts paid and whatever was earned by you will go on the T5 slips. So I do not think that you will be escaping the big tax bill on this. There is a plus side though, if they're issuing T5's, most likely it is not a scam, just a very high risk investment, unless there is some monkey business going on.

This is my understanding of the tax implications with your issues and it may not be all correct. Use the information here at your own discretion.

[redkid]

so were u able to get the $?