Q: We bought a 2-year GIC through TD Bank but issued by EQ Bank. Interest is paid at maturity. When we received the T5 it included an amount for interest for the first year. It doesn't seem correct to be taxed on interest which is not yet received. Is this an industry practice? I've asked TD and am waiting their reply.
Thank you for your view.
Thank you for your view.
5i Research Answer:
Yes; this is standard practice. Interest is reported annually even if it is rolled over for another year.