Information return in respect of distributions from and indebtedness to a non-resident trust

Who has to report?

Form T1142, Information Return in Respect of Distributions From and Indebtedness to a Non-Resident Trust, must be filed by Canadian resident individuals, corporations, trusts, and certain partnerships that are beneficiaries of non-resident trusts if they either:

  • receive a distribution from a trust
  • are indebted to a trust

A non-resident trust that's considered to be resident under section 94 of the Income Tax Act for purposes of Part I (discretionary trust) is also considered resident for purposes of determining who has to file Form T1142.

As a result, this type of trust will have to report distributions it receives from, or amounts it owes to, non-resident trusts; however, this type of trust remains a non-resident trust for other purposes.

As a result, distributions received from and indebtedness owed to this type of trust have to be reported on Form T1142 by Canadian resident beneficiaries.

What has to be reported?

Two types of basic information must be reported:

  • identification of the trust, that is, the name of the trust and the trustees
  • the amount of distributions received from the trust and the amount of indebtedness owed to the trust

Filing deadline

The information return is due on the same date as your income tax return or, if you're a partnership, on the same date as the partnership information return under section 229 of the Income Tax Regulations (or what would be the due date for the partnership information return if the partnership had to file one).

The reporting requirements apply to tax years that start after 1995.

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