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Obligation to file a trust return
As a rule, the obligation to file a trust return applies to:
- every trust listed in the Types of trusts section, provided the trust:
- was resident in Québec at the end of the taxation year, or
- was resident in Canada, outside Québec, and carried on a business in Québec during the taxation year
- every deemed resident trust. Such a trust must file an income tax return for every taxation year for which it is required to pay income tax.
| Note |
| A trust or an estate is generally considered to be resident in Québec or Canada if the trustee or the liquidator of the succession is resident in Québec or Canada. However, for a particular taxation year, a trust that is a non-resident trust is deemed to be a resident trust if, at the end of the taxation year or immediately before the trust ceased to exist, it has a resident contributor or both a resident beneficiary and a connected contributor. |
Even if it is not required to pay income tax, the trust must file a return if it:
- has no income tax payable for the year only because it is deducting a loss from a previous year
- is required to report a capital gain for the year, or disposed of capital property in the year
- allocated a benefit with a value of more than $100 to a beneficiary for upkeep, maintenance expenses or taxes with respect to property used by the beneficiary
- received income, gains or profits intended for an individual resident in Québec or a corporation with an establishment in Québec, and:
- its total income, as indicated in the trust return, exceeds $500, or
- the income to be allocated to a beneficiary exceeds $100
- is required to report a death benefit payable under the Québec Pension Plan (QPP) or the Canada Pension Plan (CPP). However, an estate that has no other income to report is not required to file a trust return if the death benefit is included in the income of the recipient.
- is an investment club that is considered to be a bona fide trust
- is an amateur athlete trust
Nevertheless, there are some trusts and entities which are exempt from filing the trust return. For further information on this subject, refer to the page, Exemption from filing the trust return.
RL-16 slips
In addition the trust must prepare RL-16 slips in order to report the amounts allocated to its beneficiaries unless the amount paid consists solely of interest income totaling less than $50. However, in such cases the beneficiaries must be informed of the amount allocated, since the beneficiaries are required to report all such amounts for income tax purposes, even if no RL slip was issued.
For further information, refer to the Guide to Filing the Trust Income Tax Return (TP-646.G-V).
