A trust is an entity that results from an act whereby a person transfers property from his or her patrimony to another patrimony that he or she constitutes. In such a case, the property is appropriated for a particular purpose, and a trustee undertakes to hold and administer it.

Income tax

To meet your income tax obligations, you may be required, for example, to:

• file a trust income tax return;
• keep and maintain records;
• pay a balance due by the trust;
• produce RL slips for beneficiaries of the trust.

The trust may be entitled to certain tax credits. For more information, click Trusts.

Source deductions and contributions

If the trust operates a business and has employees, it has obligations regarding source deductions and employer contributions. You may be required, for example, to:

• make source deductions;
• keep and maintain records;
• change your remittance frequency;
• calculate and remit source deductions and employer contributions;
• file RL slips and RL summaries;
• withhold support payments from an employee's salary or wages. 

For more information, click Source Deductions and Contributions.

Consumption taxes

A trust also has rights and obligations regarding consumption taxes. You may be required or entitled, for example, to:

• collect and report applicable taxes;
• hold or renew a permit, licence or decal;
• keep and maintain records;
• file tax returns (GST/HST, QST and other taxes) and pay a balance due;
• make instalment payments;
• use the Quick Method of Accounting to calculate GST and QST amounts payable;
• claim a tax rebate; 
• change your reporting frequency.

For more information about certain consumption taxes, click Consumption Taxes.