Obligation to File the Trust Income Tax Return
As a rule, a trust subject to Québec income tax for a given taxation year must file form TP-646-V, Trust Income Tax Return, if it has income tax payable for that year.
A trust subject to Québec income tax is a trust that:
- is resident in Québec or deemed resident; or
- carries on economic activities in Québec (for example, operating a business in Québec or disposing of a taxable Québec property).
- Certain trusts must file a return even if the amount of income tax payable is nil.
- In certain situations, a trust that was not resident in Canada must also file an income tax return.
- Certain trusts and entities are exempt from having to file the income tax return. See Exemption from Filing the Trust Income Tax Return.
Liquidator of a succession
If you are a liquidator of a succession, you do not have to file the Trust Income Tax Return (form TP-646-V) in the following situations:
- The deceased person's property is distributed shortly after the death or the succession did not earn any income before the distribution of the property. However, you must give each beneficiary a statement showing that beneficiary's share of the property of the succession.
- The succession's only income is a death benefit from the Québec Pension Plan (QPP) or the Canada Pension Plan (CPP) that is included in the income of one or more beneficiaries of the succession.
If a succession is wound up in its first taxation year, the beneficiaries can include in their income tax returns the income earned before the winding-up, based on their share of the succession's income.
Other documents to file
Based on its situation, a trust may have to file other documents, such as the RL-16 slip.
For more information, see Documents to be Filed with the Trust Income Tax Return.