Why does withdrawal from a non-RSP investment account increase my tax payable (T5008)?

[Frankly]

Thanks for the feedback, Jeffrey.  
Figuring out the capital gains on this batch of shares is not rocket science . . . BUT . . . is it okay for me to enter that amount into Box 20, or can that only be done by the issuer (RBC)?

[TurboTaxJeffrey]

You can enter that amount, but you will want documentation in case CRA asks.

[Frankly]

Thanks again, Jeffrey.  I've asked RBC to complete the T5008, but if that does not happen, I may just do as you suggest. I can document everything with the 2015 statements of my account.

[Frankly]

I've received a response from my bank (they're manning the Inbox over the weekend - impressive).  So, my assumption about the T3's bringing me up to date with the taxman were wrong.  Tax is payable on the increase in value from the time I bought to the time I sold.

Here is the response from my bank:
"I want to first let you know that the capital gains on your T3 receipts are not the same as the capital gains that you have from selling your funds. Both have to be declared.

The capital gains from your T3 are for the gains that we made by selling the stocks and bonds within your Mutual Funds. For example if within the year we had 10,000 shares of company XYZ and we sold them in order to buy shares in a different company. At that time, we calculated the gains we made on those XYZ shares and indicated them on the T3 receipts.
 
The capital gains that you made for selling your Mutual Funds, is for the difference between the prices you bought your units and the price that you sold them for. These capital gains are therefore not up to date from December 31st, 2014. UBC is used to in the calculation of capital gains and losses, by subtracting this figure from the market price of the units sold.

The Unit Book Cost (UBC) is what it has cost you 'on average' to acquire the mutual fund units that you own. Since mutual fund prices fluctuate daily, the value of the UBC also changes every time you purchase or sell units, or when units are added to your fund as a result of a distribution.

As outlined in our most recent RBC Funds Simplified prospectus, it is the investor's responsibility to keep a detailed record of purchase costs and distributions for accurate income tax reporting to Canada Revenue Agency (CRA). This is why we do not fill out box 20 on the T5008.
 
For more information on this subject, please visit the CRA website and view their guide on "Tax Treatment of Mutual Funds"

[TurboTaxJeffrey]

They say that...but at the same time, the bank does have a record themselves of all the transactions they have completed on your behalf.

[Frankly]

The conversation with RBC continues, but in the meantime, this from the CRA website, under "T5008 Statement of Securities Transactions – slip information for individuals":
"Box 20 – The amount in box 20 may or may not reflect your adjusted cost base (ACB) for the purpose of determining the gain or loss from the disposition of the security. You are required to make the adjustments, as needed, to the amount indicated in box 20, at the time of determining and reporting your gain or loss from the disposition."
This only muddies the waters even more, putting the onus back on me.  What bugs me is that I'm hiring RBC to be my investment experts. My expertise lies elsewhere and my eyes glaze over with all this boring stuff.

[cathyellefsen]

I haven't sold any of my mutual funds. RBC has managed and bought and sold within them and I have been issued T3's. But I ALSO got a bunch of t5008's when I used the CRA download to Turbo tax that added a ton of income. Since I haven't dispositioned any of the funds I don't understand why I would be getting these....

[G-E-J]

 I HAVE A SIMILAR ISSUE  - In 2022 I moved money from one financial institution to another.  This necessitated selling the mutual funds I had with institution A.  This gave me a capital gain.  I received a T3 which showed a “Return of Capital” for 2 of the 6 funds that were in the portfolio and the same total amount was shown in box 42-Amount resulting in cost base adjustment.  I also received a T5008 which showed “cost or book value” and “proceeds of disposition in boxes 20 and 21 respectively.  These were non-registered accounts. 

Do I just enter the information as shown on the T3, T5, & T5008 or do I need to calculate a revised cost for some or all of the funds?