Effective November 27, 2021, the deferred sales charge and low load sales charge purchase options will no longer be available for purchase on Sun Life Global Investments mutual funds. Switches between funds of the same sales charge purchase option will be permitted.

Taxation on non-registered

Please note: This information does not apply to Tax-Free Savings Accounts.

Guaranteed Investment Certificates (GICs) products

Interest credited to the GIC account in the taxation year, is taxable to the owner of the account.

The interest is credited to the account:

  • on the anniversary of the investment,
  • at maturity of the investment,
  • when a withdrawal is done (not applicable to SunGIC Max)
  • Monthly interest GIC's - on the monthly anniversary of the investment.
  • Daily interest account - monthly on the anniversary of the account.

At the end of each tax year, we send tax slips to the owner of the account. The interest is reported in Box 13 of the T5 tax slip. Quebec residents also receive an R3 tax slip reporting the interest in Box D.

Note: Excluding SunGIC Max, interest and possibly a market value adjustment (MVA) will be credited on a withdrawal. This interest and MVA will be reported on the tax slip.

Taxation as a result of transfer of ownership of non-registered GICs

  • The former owner is taxed for any interest credited to the account before the date of transfer of ownership.
  • The new owners are taxed for interest credited after the transfer of ownership.

Taxation as a result of death

All interest credited to the account prior to the date of death is taxed to the owner(s) of the account. This includes all MVA's.

Joint tenants with rights of survivorship (JTWROS) accounts

  • The deceased and the surviving owner(s) are taxed for any interest credited to the account in the year of death.
  • The surviving owner(s) are taxed for any interest credited to the account after the date of death.

Joint tenants in common accounts

  • The deceased and the surviving owners are taxed for any interest credited to the account before the date of death.
  • The estate of the owner and the surviving owners are taxed for any interest credited after the year of death.

Non-resident clients

As of January 1, 2008, non-resident tax is not deducted from the interest on non-registered GICs. We do have to issue a NR4 tax slip to report the interest only.