1.3 Filing requirements

1.3 Filing requirements

1.3.1 Filing deadline

As a trustee, you are responsible for filing the Trust Income Tax Return (form TP-646-V).

You must file the return along with the required documents (see section 1.3.2) within 90 days after the end of the trust's taxation year. You must also pay any income tax payable and remit copies of the RL-16 slips to the beneficiaries within the same time period.

As of 2018, you can use form TPZ-1026.0.1.F-V, Payment of Balance - Trusts, to pay the balance due for 2019 or 2018 or any other taxation year.

Trusts that file the return late are liable to a penalty of 5% of the income tax that remains unpaid on the filing deadline, and to an additional penalty of 1% of the unpaid income tax for each full month the return is late, to a maximum of 12 months.

Note that if the filing deadline falls on a Saturday, Sunday or statutory holiday, the deadline is extended to the following business day.

When determining the amount of unpaid tax for the purposes of calculating a penalty, we take into account any losses carried forward from a previous taxation year (lines 91 and 92).

Public trusts - Obligation to post information online

Public trusts must provide, in the prescribed form and by the prescribed deadline, information about the trust (allocations and designations of income to its beneficiaries, distribution of capital in their favour, etc.). Such information must be posted on the website of the Canadian Depository for Securities (cds.ca) no later than 60 days after the end of the taxation year concerned.

However, if the trust meets the requirements to be considered a public investment trust, it must post such information no later than 67 days after the end of the calendar year in which the taxation year ended.

If the trust is a public trust, check box 22 of the return.

1045; 1086R57

1.3.2 Documents to be filed

All documents that apply to the trust's situation must accompany the trust income tax return. The accompanying documents will vary depending on whether the return filed is a computer-generated return or a return completed on paper. If the return is filed using software, refer to the guide entitled Information for Software Users (IN-416.A-V) to find out which documents must be submitted to us. If the return is filed on paper, please submit the following documents, where applicable:

• the schedules of the return:

  • Schedule A, Taxable Capital Gains and Designated Net Taxable Capital Gains,

  • Schedule B, Investment Income, Gross-Up of Dividends Not Designated and Adjustment of Investment Expenses,

  • Schedule C, Summary of Allocations and Designations,

  • Schedule D, Carry-Back of a Loss,

  • Schedule E, Income Tax on the Taxable Distributions Amount and Calculation of Eligible Dividends to Be Designated,

  • Schedule F, Income Tax Payable by a Specified Trust for a Specified Immovable,

  • Schedule G, Additional Information: Trust Resident in Québec That Owns a Specified Immovable;

• certain forms, such as:

  • TP-128.F-V, Income Earned by a Trust from the Rental of Immovable Property;

  • TP-1086.R.23.12-V, Costs Incurred for Work on an Immovable;

  • TP-274.F-V, Designation of Property as a Principal Residence of a Personal Trust;

  • TP-668.1-V, Taxable Capital Gains of a Trust That Give Entitlement to a Deduction;

  • TP-671.9-V, Information Return of the Beneficiary of a Designated Trust;

  • TP-772-V, Foreign Tax Credit;

  • TP-776.42.F-V, Alternative Minimum Tax of a Trust;

  • TPZ-1179-V, Logging Operations Return;

  • TP-1079.DI-V, Mandatory or Preventive Disclosure of Tax Planning;

  • TP-80.1-V, Calculation of Business or Professional Income, Adjusted to December 31;

  • TP-750-V, Income Tax Payable by a Trust Resident in Québec That Carries On a Business in Canada, Outside Québec, or by a Trust Resident in Canada, Outside Québec, That Carries On a Business in Québec;

  • TP-1129.64-V, Special Tax Relating to a Registered Education Savings Plan;

  • TP-768.1-V, Recovery Tax: Qualified Disability Trust;

  • TP-163.1-V, Interest Paid on a Loan Taken Out on a Life Insurance Policy;

  • TP-653-V, Deemed Sale Applicable to Certain Trusts;

  • TP-1031.1-V, Election by a Trust to Pay in Instalments the Income Tax Resulting from a Deemed Sale Applicable to Certain Trusts;

  • TP-653.C-V, Election of a Trust to Defer the Payment of Income Tax Attributable to the Deemed Disposition of Its Interest in a Qualified Public Corporation;

  • TP-726.30-V, Income-Averaging for Forest Producers

• all RL slips and other information slips received by the trust;

• all receipts for donations and gifts, and, if applicable, the following documents:

  • form TPF-712.0.1-V, Certificate of Disposition of Cultural Property, issued by the Conseil du patrimoine culturel du Québec;

  • form T871, Cultural Property Income Tax Certificate, issued by the Canadian Cultural Property Export Review Board, or the notice issued by the Conseil du patrimoine culturel du Québec;

  • form TPF-712.0.2-V, Certificate for a Gift of Land or a Servitude with Ecological Value, issued by the Ministère de l'Environnement et de la Lutte contre les changements climatiques;

• the FMV certificate issued by the Ministère de la Culture et des Communications;

• the FMV certificate issued by the Ministère de l'Environnement et de la Lutte contre les changements climatiques;

• the certificate issued to a trust that is a certified forest producer under the Sustainable Forest Development Act and that is asking to average a portion of the income derived from a private forest;

• copies of the RL-16 slips (see "RL-16 slips" below) issued by the trust, regardless of whether they were submitted online (in an XML file), by mail or by other means (on paper);

• a copy of one of the following documents, if the trust is filing the return for the first time and such a document has not already been sent:

  • the will, accompanied by a list of the assets at the time of death (see the notes below),

  • the trust deed,

  • the document confirming the trust's existence, in the case of a deemed trust;

• proof that an election (for example, the election concerning the portion of the income or the capital gain paid or that became payable in the year to a beneficiary or the election concerning the portion of the accumulating income allocated to a preferred beneficiary) was filed with the CRA (see sections 5.3.2 and 5.3.3 as well as the definition of "preferred beneficiary" in Part 6).

NOTE If this is the first income tax return filed by a succession and the deceased person did not leave a will, you must enclose form LM-14.1-V, Designation of a Liquidator by the Heirs. If the trust fails to send us a copy, by the prescribed deadline, of any document filed with the CRA, it will be liable to a penalty of $25 per day, up to $2,500.

21.4.7

The schedules and forms are generally updated every year. If you are required to file a return for a given taxation year, for example, 2020, before the appropriate version of the documents becomes available, you can complete the version for the previous taxation year (that is, 2019), taking into account any new tax measures in effect for 2020 and replacing 2019 by 2020 at the top of the return and of each schedule. If you are filing a return for 2019 or for a previous taxation year, you must complete the version of the return for the year concerned (other tax measures may have been introduced since then). You can print out the version you need from our website (revenuquebec.ca), or order it online or by telephone.

RL-16 slip

If the trust is required to file an income tax return, it must also file an RL-16 slip for each beneficiary (including beneficiaries not resident in Québec) to whom it allocated a capital gain or income (see points 1 through 5 of section 5.3.1).

It is not necessary to file an RL-16 slip for a given beneficiary if the amount of income to be allocated to the beneficiary does not exceed $100. However, the beneficiary must be informed of the amount allocated, since the beneficiary is required to report any amount allocated, even if no RL slip was issued.

Certain trusts must file other types of RL slips rather than RL-16 slips (see the information on employee trusts and employee benefit plans in section 1.7).

A trust resident in Canada, outside Québec, at the end of a taxation year must file an RL-16 slip for each beneficiary resident in Québec to whom the trust allocated a capital gain or income, even if the trust had no Québec income tax payable for that taxation year. In this case, only complete Schedule C and enclose it with the RL-16 slips.

Make sure that you always use the version of the RL-16 slip that corresponds to the version of the income tax return in effect for the taxation year concerned. For example, you must use the 2019-10 version of the RL-16 slip when filing a return for the 2019 taxation year or with the return filed for 2020 if the 2020 version of the RL-16 slip is not yet available.

You should always consult the version of the Guide to Filing the Trust Income Tax Return (TP-646.G-V) and of the Guide to Filing the RL-16 Slip (RL-16.G-V) for the taxation year concerned.

Where to send the documents

The return, schedules, forms and related documents must be sent to us by mail or by other means, on paper, at the address below that is closest to the trust's place of residence:

• 3800, rue de Marly, Québec (Québec)  G1X 4A5

• C. P. 3000, succursale Place-Desjardins, Montréal (Québec)  H5B 1A4

1.3.3 Format of the trust income tax return

The Trust Income Tax Return (form TP-646-V) is a prescribed form that can be provided to you on paper. You can also print it from our website.

Another option is to use the fillable PDF version, which you can print once it is completed.

To file a computer-generated copy of the trust income tax return, you must get authorized software from a software developer. We suggest that you consult the guide Information for Software Users (IN-416.A-V).

To file RL-16 slips, refer to the Guide to Filing RL-16 Slips: Trust Income (RL-16.G-V).