Chapter 4 - T3 slip and T3

Chapter 4 - T3 slip and T3

Summary

As trustee, you have to complete a T3 slip, Statement of Trust Income Allocations and Designations, for each resident beneficiary, including a preferred beneficiary, to whom the trust allocated income in the year. You must also do this for a trust that made any distributions of capital that would result in an adjustment to the adjusted cost base of the beneficiary's interest in the trust. If you allocated income to a non-resident beneficiary, see "Column 2 - Non-resident"on page 60.

This chapter provides information on how to complete the T3 slip. The T3 slip has three individual slips printed on each sheet. These are intended to be used for laser or ink jet printers, for typing, or to be completed by hand.

The T3 slip shows only the high-use boxes (boxes 12, 14, 16, 18, 21, 23, 26, 30, 32, 39, 49, 50, and 51). There are also generic boxes with blank codes for less common amounts. If you have to use a generic box, enter the box number and the amount in the other information area.

If you need more than six boxes for the same beneficiary, use an additional T3 slip.

You can find a sample of the slip on page 82.

You do not have to complete a T3 slip for a beneficiary if the income allocated in the year to that beneficiary is less than $100. However, you have to notify the beneficiary of the allocated income since it still has to be reported on the beneficiary's return.

You have to complete a T3 Summary, Summary of Trust Income Allocations and Designations, even if you only prepare one T3 slip. This is the form you use to record the total of the more common amounts you reported on all related slips. File only one summary for the trust, unless it is a mutual fund trust.

See the back of the T3 Summary for information on how to complete it. You can find a sample of the form starting on page 82.

How to file the T3 slip and T3 Summary ▲

Electronic filing methods

The threshold for mandatory electronic filing of trustrelated information returns (T3 slips) for a calendar year has been lowered from 50 to 5 for information returns filed after December 31, 2023.

Filing by Web Forms

Our Web Forms application is free and secure. To use it, all you need is access to the Internet. With Web Forms you can complete a trust-related information return easily, following the step-by-step instructions.

Web Forms lets you:

• file up to 100 slips (original, additional, amended, or cancelled) from our website

• calculate all of the totals for the T3 Summary

• create a digital trust-related information return containing T3 slips and T3 Summary, which can be saved and imported at a later date

• print all your slips and your summary

• validate data in real time

After you submit your trust-related information return, you will receive a confirmation number that will be your proof that the CRA received it.

To use the Web Forms application, you must have a web access code. If you do not have a web access code, you can easily get one online or by calling us. For more information, see "Web access code" on page 75.

To start using this application or to get more information about Web Forms, go to canada.ca/taxes-iref.

Filing by Internet file transfer

Internet file transfer allows you to transmit an original or amended T3 summary and slips with a maximum file size of 150 MB. All you need is a web browser to connect to the Internet, and your software will create, print, and save your digital trust-related information return in XML format. For information about this filing method, contact your software publisher or go to canada.ca/taxes-iref.

Web access code

To file your T3 summary and slips over the Internet using the Internet file transfer or Web Forms service, you will need a web access code (WAC). If you have misplaced or do not have a WAC, go to canada.ca/taxes-iref to access our web access code online service. If you cannot get your WAC online or would like to change it, call the Business Enquiries line at 1-800-959-5525.

Filing on paper

If you file 1 to 5 slips, we strongly encourage you to file over the Internet using Internet file transfer or Web Forms. However, you can still file up to 5 slips on paper for returns filed after December 31, 2023.

If you need more paper copies, you can order a maximum of 9 single-page slips at canada.ca/cra-forms or by calling 1-800-959-5525.

If you choose to file your return on paper, mail it to the following address:

Complete one copy of the T3 slip for each recipient and send them with your T3 Summary. Enter the information for two different recipients on one sheet. This will let us process your information return faster. You must keep a copy of the T3 slips and the T3 Summary for your files.

Filing using computer-printed (customized) forms

For those who fill out a large number of T3 slips, we accept certain slips other than our own. For help on how to fill out the slips accurately, consult the guidelines for the production of customized forms at canada.ca/cra-customized-forms or see the current version of Information Circular IC97-2R20, Customized Forms.

If you are a mutual fund trust that files T3 slips by Internet, you can combine the income and capital gains from several funds onto one T3 slip for each unit holder. However, when you combine the slips, you have to do all of the following:

• Submit a sample of the combined information slip requesting an approval number

  Notes
  Send your digital submission in either *.pdf or *.jpg format to customized-hors-series@cra.gc.ca

  Send your paper submission to the following address:

  Individual Returns Directorate
  Information Returns Filers Services Section
  750 Heron Road, 7th floor
  Ottawa ON  K1A 0L5

• Prepare the Internet submission of summary forms and slips, which you submit to us at the individual fund level

• Write "Combined information slip" clearly on the T3 slip under the recipient's name and address, and provide the unit holders with statements that allow them to reconcile the amounts reported on the combined information slips

• Maintain an audit trail so the combined information slips can be verified if we audit these funds later

Distributing the T3 slip ▲

Send us the T3 slip along with the T3 Summary no later than 90 days after the end of the trust's tax year end. See "Tax year-end and fiscal period" on page 21.

Do not staple the summary and slips to the T3 return.

Send two copies of the T3 slip to the beneficiary. You do not have to keep a copy of the T3 slips. However, when you file online, you have to keep the information from which you prepared the slips in an accessible and readable format.

You can provide recipients with a digital copy of their T3 slips only if the recipient gives you their consent in writing or by email.

• If you fail to distribute the T3 slip or any other trust-related information slip to a recipient by the due date, you will be liable for a penalty. For more information, see "Penalties and interest" on page 23.

Amending, cancelling, adding, or replacing T3 slips

After filing your T3 slips, you may notice an error on a trust-related slip. If so, you will have to prepare an amended slip to correct the information. Provide copies to the recipient. Do not include slips that have no changes.

If you prepare and issue an amended T3 slip after you have filed the original slip with us, you may have to file an amended T3 Summary. If there is a change to the amounts in the boxes shown on the front of the summary, file an amended T3 Summary. If the amended T3 slip affects the amounts shown on the T3 Trust Income Tax and information Return, or on Schedule 9, Income Allocations and Designations to Beneficiaries, do not file another T3 return. Instead, send us a completed Form T3-ADJ, T3 Adjustment Request, or a letter providing the details of the change. Indicate the tax year you want us to change and send us any supporting documents. Include the trust's account number on the letter.

Amending or cancelling T3 slips over the Internet

To amend a T3 slip over the Internet, change only the information that is incorrect and retain all of the remaining information that was originally submitted. Use summary report type code "A" and slip report type code "A."

To cancel a slip, do not change any information that was contained on the original slip. Use summary report type code "A" and slip report type code "C."

For more information about amending or cancelling trust-related information slips using the Internet, go to canada.ca/taxes-iref.

Amending or cancelling T3 slips on paper

If you choose to file your amended return on paper, clearly identify the T3 slips as amended or cancelled by writing "AMENDED" or "CANCELLED" at the top of each slip. Make sure you fill in all the necessary boxes, including the information that was correct on the original slip. Send two copies of the slips to the recipient. Send one copy of the amended/cancelled slips to us with a letter explaining the reason for the amendment/cancellation.

Adding T3 slips

After you file your T3 return, you may discover that you need to send us additional T3 slips. If you have original T3 slips that were not filed with your return, file them separately either online or on paper.

To file additional slips online, see "Electronic filing methods" on page 75.

If you file additional slips on paper, clearly identify the new slips by writing "ADDITIONAL" at the top of each slip. Send one copy of the additional slips to any tax centre. See "Electronic filing methods" on page 75 for more information on adding slips over the Internet or go to canada.ca/taxes-iref.

Recipient identification number ▲

The recipient identification number is one of the following:

• the social insurance number (SIN) if the beneficiary is an individual (other than a trust)

• the business number and program account if the beneficiary is a corporation or a partnership

• the trust account number if the beneficiary is a trust

This section explains the special rules and penalties that apply to using SIN, business number and program account and the trust account number.

Trustee - Anyone who prepares an information slip has to make a reasonable effort to get the SIN, business number and program account, or trust account number from the person or partnership who will receive the slip. Unless you make a reasonable effort to get this information, you will be liable to a $100 penalty each time you do not provide the SIN, business number and program account, or trust account number on the information slip. This penalty does not apply if the person or partnership has applied for but has not yet received a SIN, a business number and program account, or trust account number when they file their return.

Beneficiary - Persons or partnerships have to give their SIN, business number and program account, or trust account number on request to anyone who has to prepare an information slip for them.

If the person or partnership does not have a SIN, business number and program account, or trust account number, both of the following rules apply:

• the person or partnership must apply for the number within 15 days of your request (the SIN from any Service Canada Centre, the business number and program account and trust account number from CRA)

• once the person or partnership receives the number, they have 15 days to give it to you

Persons or partnerships who, for any reason, do not comply with these requirements are liable to a penalty of $100 for each failure to give their SIN, business number and program account, or trust account number.

A beneficiary may have applied for but has not yet received a SIN, a business number and program account, or a trust account number, or the beneficiary may refuse to give you the number. In these cases, do not delay filling out the information slip beyond the filing due date. Depending on the type of beneficiary, if you have not received the SIN, business number and program account, or trust account number by the time you prepare the T3 slip, enter the following in box 12:

• beneficiary is an individual (other than a trust)

    Enter 000000000

• beneficiary is a business (sole proprietor, corporation or partnership)

    Enter 000000000RP0000

• beneficiary is a trust

    Enter T00000000

If you have to prepare an information slip, you, your employees, your officers, or your agents cannot knowingly use, share, or allow a SIN, business number and program account or trust account number to be shared without the person's or partnership's written consent, unless required or authorized by law. Any person who does so is guilty of an offence and, if convicted, may have to pay a fine or go to jail, or both.

For more information, see Information Circular IC82-2R2, Social Insurance Number Legislation That Relates to the Preparation of Information Slips.

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