After finding that retroactive salary adjustments paid for a nine-year period were not eligible for treatment under the averaging rules in ss. 110.2 and 120.31, CRA stated, regarding at the legal rate of 5% paid on the retroactive adjustments:
[I]nterest paid on a payment as a retroactive salary adjustment is reported on T5 slips for the year it is received to allow employees to be better informed of the amounts they have received, since they must be included in computing their taxable income.