IMPORTANT
2014 Investment Fund Tax Reporting Bulletin
The intent of this Investment Fund Tax Reporting Bulletin is to give you a basic understanding of the various tax reporting documents provided to Franklin Templeton Investments account
holders and to help you complete your T1 Personal Tax Return (“Tax Return”). One of the best resources for completing your 2014 Tax Return is the Canada Revenue Agency (“CRA”)
General Income Tax and Benefit Guide (the “Guide”) for your province or territory of residence. The Guide provides detailed explanations of items on your Tax Return. It is available
from CRA on its website at www.cra-arc.gc.ca/formspubs, click ‘Tax packages for individuals’ and select your province of residence on December 31, 2014. Residents of Quebec can find
additional information for completing their provincial tax returns from the Ministère du Revenu and its website at www.revenu.gouv.qc.ca/en.
ONLINE TAX SLIPS! Access your 2014 RRSP Contribution Slips and Tax Slips through our website at www.franklintempleton.ca. Not registered for our online access? Call our Client
Services team today at (800) 387-0830.
YOUR FRANKLIN TEMPLETON INVESTMENTS ANNUAL STATEMENT (T5008/RL-18)
All sales (including switches) of your Franklin Templeton Investments mutual funds are reported on your December 31, 2014 Annual Statement. This statement contains information that
can help you report your capital gains and losses for the year, and serves as your T5008 “Statement of Securities Transactions” and as your RL-18 “Securities Transactions” for Quebec
residents. You do not have to file your Annual Statement with your Tax Return, but it should be retained for your records.
STATEMENT OF INVESTMENT INCOME (T5/RL-3)
Templeton Growth Fund, Ltd. and Franklin Templeton Corporate Class Ltd. are mutual fund corporations for tax purposes. Each of the Corporate Class Funds is part of Franklin
Templeton Corporate Class Ltd. When you receive a dividend from one of these mutual fund corporations, Franklin Templeton Investments will send you a T5 “Statement of Investment
Income” Slip (Residents of Quebec will also receive a RL-3 “Investment Income” Slip). Certain classes of Franklin Templeton Corporate Class Ltd. paid eligible dividends to shareholders
of record on January 29, 2014, so you will only receive a T5/RL-3 Slip if you held the applicable Corporate Class Funds on that date. Templeton Growth Fund Ltd, did not pay any of these
particular dividends in 2014, so you will not receive a T5/RL-3 Slip with respect to holdings in Templeton Growth Fund Ltd.
The following example explains how to report the information you will find on a T5 Slip to your Tax Return. Residents of Quebec must follow the same process for reporting the
information on their RL-3 on their provincial return. Corporate and other shareholders should consult their respective Guides when preparing their Tax Returns to determine how to
report this information.
WHAT YOU WILL RECEIVE
2014
300.00
FUNDS
414.00
62.18
FED 24
FED 25
FED 26
FED 18
Actual amount of
eligible dividends
Taxable amount of
eligible dividends
Dividend tax credit for
eligible dividends
Capital gains dividends
FUND A
100.00
138.00
20.73
—
FUND B
200.00
276.00
41.45
—
Total – all funds
300.00
414.00
62.18
—
HOW TO REPORT
Box 24: Actual amount of eligible dividends (RL-3 Box A1)
This Box reports the amount of high-rate Canadian eligible dividends the Funds have
distributed to you. You do not need to report this amount to your Tax Return; instead, the
amount in Box 25 is reported.
Box 26: Federal dividend tax credit for eligible dividends (RL-3 Box C)
This Box reports the Federal dividend tax credit that offsets the grossed up dividends you
reported from Box 25. Include this amount on line 425 of Schedule 1, “Federal Tax”.
Box 25: Taxable amount of eligible dividends (RL-3 Box B)
This Box reports the taxable amount of high-rate Canadian eligible dividends the Funds
distributed to you. It is calculated by grossing up the amount in Box 24 by 38%. Include
this amount in Part 1 of Schedule 4, “Statement of Investment Income”. Include the total of
all taxable Canadian dividends you reported to Schedule 4 on line 120 of your Tax Return.
Statement of Amounts Paid or Credited to Non-Residents of Canada (NR4)
If you are a non-resident of Canada and received a distribution or dividend, you will not receive a T3 or T5 Slip. Instead, Franklin Templeton Investments will send you a NR4 Slip. Depending
on your country of residence, Franklin Templeton Investments will withhold and remit a portion of your distribution to CRA. These withholding taxes are usually creditable against taxes
payable in your country of residence. The gross distribution paid to you is reported in Box 16, “Gross Income”, and the tax withheld is reported in Box 17, “Non-Resident Tax Withheld”.
5000 Yonge Street, Suite 900, Toronto, Ontario, Canada M2N 0A7
Telephone: (416) 364-4672 • Toll Free: (800) 387-0830 • Facsimile: (416) 364-1163 • Web site: www.franklintempleton.ca
2014 Investment Fund Tax Reporting Bulletin
STATEMENT OF TRUST INCOME ALLOCATIONS AND DESIGNATIONS (T3/RL-16)
If you received a distribution of income, capital gains, or return of capital (“ROC”) from a mutual fund trust in 2014, you will receive a T3 “Statement of Trust Income Allocations and
Designations” Slip (Residents of Quebec will also receive a RL-16 “Trust Income” Slip). All Franklin Templeton Investments Funds and Portfolios, other than the Templeton Growth
Fund, Ltd. and the Franklin Templeton Corporate Class Funds, are trusts. Franklin Templeton Investments issues consolidated tax information Slips to simplify the reporting of your Fund
distributions. Your tax Slip contains a summary section detailing the distributions you received from each Fund.
ROC information is provided on your T3/RL-16 Slip as well as your Annual Statement. You do not need to report this amount on your Tax Return; instead, reduce the Adjusted Cost Base
(“ACB”) of the related investment by this figure.
The following example explains how to report the information you will find on a T3 Slip to your Tax Return. Residents of Quebec must follow the same process for reporting the
information on their RL-16 on their provincial return. Corporate and other unitholders should consult their respective Guides when preparing their Tax Returns to determine how to
report this information.
WHAT YOU WILL RECEIVE
2014
100.00
138.00
20.73
1,200.00
100.00
118.00
13.00
25.00
25
34
42
14
12
500.00
75.00
100.00
FED 23
FED 32
FED 39
FED 49
FED 50
FED 51
FED 25
FED 34
FED 26
FED 21
FED 42
Actual amount of
dividends other than
eligible dividends
Taxable amount of
dividends other than
eligible dividends
Dividend tax credit for
dividends other than
eligible dividends
Actual amount
of eligible dividends
Taxable amount of
eligible dividends
Dividend tax credit for
eligible dividends
Foreign
non-business income
Foreign non-business
income tax paid
Other income
Capital gains
Return of Capital
—
100.00
100.00
—
118.00
118.00
—
13.00
13.00
—
100.00
100.00
—
138.00
138.00
—
20.73
20.73
500.00
—
500.00
75.00
—
75.00
25.00
—
25.00
1,000.00
200.00
1,200.00
100.00
—
100.00
FUNDS
Fund A
Fund B
Total – all funds
HOW TO REPORT
Box 21: Capital gains (RL-16 Box A)
This Box reports any capital gains the Funds have distributed to you. Include this amount
on line 176 on Schedule 3, “Capital Gains (or Losses) in 2014”. Include the taxable portion
of all gains reported to Schedule 3 on line 127 of your Tax Return.
Box 39: Federal dividend tax credit for dividends other than eligible dividends
(RL-16 Box J)
This Box reports the Federal dividend tax credit that offsets the grossed up dividends you
reported from Box 32. Include this amount on line 425 of Schedule 1, “Federal Tax”.
Box 23: Actual amount of dividends other than eligible dividends (RL-16 Box C2)
This Box reports the amount of low-rate Canadian dividends the Funds have distributed
to you. You do not have to report this amount to your Tax Return; instead, the amount in
Box 32 is reported.
Box 42: Return of capital (RL-16 Box M)
This Box reports any ROC the Funds have distributed to you. You do not report this
amount on the Tax Return. Instead, you reduce the ACB of the investment by the amount.
In the above example, $100 of ROC is reported in Box 42. As that relates entirely to Fund
A, you need to decrease Fund A’s ACB by $100.
Box 25 : Foreign non-business income (RL-16 Box F)
This Box reports any foreign income the Funds have distributed to you. Include this amount
in Part II of Schedule 4, “Statement of Investment Income”, as “Income from Foreign
Sources”, and on line 433 of Form T2209 “Federal Foreign Tax Credit.”
Box 26: Other income (RL-16 Box G)
This Box reports any Canadian interest or business income the Funds have distributed to
you. Include this amount in Part II of Schedule 4. Include the total of Box 25, Box 26, and
any other investment income you reported to Schedule 4 on line 121 of your Tax Return.
Box 32: Taxable amount of dividends other than eligible dividends (RL-16 Box I)
This Box reports the taxable amount of low-rate Canadian dividends the Funds distributed
to you. It is calculated by grossing up the amount in Box 23 by 18%. Include this amount in
Part I of Schedule 4 . Include the total of all taxable Canadian dividends other than eligible
dividends you reported to Schedule 4 on line 180 of your Tax Return.
Box 49: Actual amount of eligible dividends (RL-16 Box C1)
This Box reports the amount of high-rate Canadian eligible dividends the Funds have
distributed to you. You do not have to report this amount to your Tax Return; instead, the
amount in Box 50 is reported.
Box 50: Taxable amount of eligible dividends (RL-16 Box I)
This Box reports the taxable amount of high-rate Canadian eligible dividends the Funds
distributed to you. It is calculated by grossing up the amount in Box 49 by 38%. Include
this amount in Part I of Schedule 4. Include the total of all taxable Canadian dividends you
reported to Schedule 4 on line 120 of your Tax Return.
Box 51: Federal dividend tax credit for eligible dividends (RL-16 Box J)
This Box reports the Federal dividend tax credit that offsets the grossed up dividends you
reported from Box 50. Include this amount on line 425 of Schedule 1, “Federal Tax”.
Box 34: Foreign non-business income tax paid (RL-16 Box L)
This Box reports any foreign withholding taxes the Funds distributed to you. Include this
amount on line 431 of Form T2209 “Federal Foreign Tax Credit.”
DISTRIBUTION INFORMATION
Details of Fund and Portfolio distributions are available, by series, on our web site at www.franklintempleton.ca or by calling our Client Services team at (800) 387-0830.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please
read the Franklin Templeton Investments prospectus before investing. Mutual funds are not guaranteed, their values change
frequently and past performance may not be repeated.
FTI TAXEF 12/14