Taxation year

Inter vivos trust

Any trust other than a testamentary trust is an inter vivos trust. The taxation year of an inter vivos trust corresponds to the calendar year.

However, a mutual fund trust may elect to have its taxation year end on December 15 instead of December 31.

Testamentary trust

In the case of a testamentary trust (estate or succession or trust created by will), the first taxation year begins on the date of death. It ends within the next 12 months, on a date chosen by the trustee (or the liquidator of the succession).

There are several advantages to having the trust's taxation year end with the calendar year, as described below:

• Most information slips and RL slips, such as the RL-3 slip (on which bank interest is indicated), are issued for the calendar year.
• The trust return and schedules for the taxation year are generally available only toward the beginning of the following calendar year.
• It becomes easier to complete the required forms and apply certain rules when the taxation year corresponds to the calendar year.

Once the end-date of the taxation year has been determined, it cannot be changed without the consent of Revenu Québec.

For further information, refer to the Guide to Filing the Trust Income Tax Return (TP-646.G-V).