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.
For more information, see Distributing RL Slips to Recipients.
- 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 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 2021-10 version of the RL-16 slip when filing a return for the 2021 taxation year or with the return filed for 2022 if the 2022 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.
We have assigned an identification number to all trusts that have filed an income tax return. The identification number will be included on all subsequent notices of assessment that we send them. Trusts must include this identification number on all returns, reports or other documents they are required to file under any tax law, including the Trust Income Tax Return (TP-646-V). Trusts must also include the trust account number assigned by the Canada Revenue Agency. Failure to provide this information may result in penalties.
We are relaxing the rules for trusts that do not have an identification number, for income tax returns, reports and related documents filed and sent by December 31, 2022. The rules will be tightened again as of January 1, 2023.
Trusts usually have to complete form LM-58.1.2-V, Application for a Trust Identification Number, to get an identification number. However, to make the process easier, we are allowing them to leave the spaces for the trust identification number blank until December 31, 2022. They are therefore not required to file form LM-58.1.2-V to apply for the number. We will assign an identification number when we process their income tax return. The number will be included on the notice of assessment that we send them and must subsequently be included on all returns, reports and other documents filed under a tax law and sent as of January 1, 2023.
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.