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.
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).
- 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 immediately after the person's death or the succession did not earn any income before the distribution of the property. However, you must give each beneficiary a statement showing their 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.
For more information about the obligations of a liquidator of a succession, see Obligation to File the Income Tax Returns of a Deceased Person.
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.