RL-16 Slip: Trust Income
If the trust is required to file an income tax return, it must also file an RL-16 slip (see courtesy translation RL-16-T) for each beneficiary (including beneficiaries not resident in Québec) to whom it allocated a capital gain or income.
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.
- 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 of the Trust Income Tax Return (TP-646-V) and enclose it with the RL-16 slip.
- Certain trusts must file other types of RL slips rather than RL-16 slips. This is the case for employee trusts and employee benefit plans.
You can file RL-16 slips:
Make sure that you always us 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 (you would also use it when filing a return for 2020 if the 2020 version of the RL-16 slip is not yet available).
Whether or not you are required to send RL slips online depends on the number of RL slips you are filing.
If you are filing more than 50 RL-16 slips, you must send them to us online (in an XML file).
If you are filing fewer than 51 RL-16 slips, you must send them to us either:
- online (in an XML file); or
- by mail or by other means (on paper).
In the case of paper RL slips, send us only copy 1 of each slip.
The Tax Administration Act provides for penalties if:
- you file the RL-16 slips or the trust income tax return late; or
- you are required to file more than 50 RL-16 slips and you fail to send them to us online.