T3 Schedule 130 - Excessive Interest and Financing Expenses Limitation

T3 Schedule 130 - Excessive Interest and Financing Expenses Limitation

Complete the Schedule 130 for tax years starting on or after October 1, 2023 if the trust is:

• subject to the EIFEL rules primarily contained in section 18.2 and 18.21 of the Act (unless it meets the definition of an excluded entity), or

• a party to any election under the EIFEL rules

An excluded entity for a tax year generally includes:

• A Canadian-resident trust that, together with any eligible group entities, has aggregate net interest and financing expenses of $1 million or less

• A Canadian-resident trust that, together with any eligible group entities

  (i) Carries on substantially all business, undertakings, and activities in Canada and has limited ties to non-resident persons

  (ii) Has all or substantially all of its interest and financing expenses paid or payable to persons or partnerships that are not tax-indifferent and that do not deal at arm's length with the trust or any eligible group entity

For additional details, refer to the definitions of "excluded entity"and "eligible group entity"in subsection 18.2(1).

For more information on how to complete this schedule, go to EIFEL webpage canada.ca/cra-eifel.

If a trust fails to file Schedule 130, or files the schedule without including all of the information required by the form, paragraph 152(4)(b.8) allows the Minister to reassess the return outside of the normal reassessment period.

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