About Form T1142

Please note that all statutory references, unless otherwise specifically stated, are to the Income Tax Act. If there is any discrepancy between this guidance and the Income Tax Act, the legislation in the Income Tax Act prevails.

Changes to the form

Form T1142, Information Return in Respect of Distributions from and Indebtedness to a Non-Resident Trust has been revised and must be used for the 2025 and later tax years. A separate supplement must be completed for each non-resident trust. The supplement has been revised as follows:

• Section A has been revised to collect additional information about the non-resident trust and its settlors.
• Several questions have been added after Section A to obtain information regarding the administration of the non-resident trust.
• Form T1142 seeks information and supporting documents that the entity relied on when completing sections A, B, and C. For this purpose, the question “Do you have any supporting documents relating to any of the information reported in Section…” has been added in each of these sections. For example, Section A asks questions about the settlors of the trust, including their identity. This information would be found in the trust instrument or obtained from another source such as the trustee. If the entity has the trust instrument or an email from the trustee identifying the settlors, they would tick the "Yes" box next to the question "Do you have any supporting documents relating to any of the information reported in Section A?"
• Section D requires the entity to attach its supporting documents related to the information provided in sections A, B, or C.
• The Japanese Yen has been added as a functional currency.

Who has to file

Form T1142 is required to be filed for a taxation year by a specified Canadian entity that:

• is beneficially interested in a non-resident trust (other than an excluded trust or an estate that arose on and as a consequence of death) at any time in the tax year; and
• has received a distribution from or was indebted to that non-resident trust in the tax year

A specified Canadian entity for a tax year includes a Canadian resident individual, corporation, trust, as well as a partnership that is not:

• a mutual fund corporation or mutual fund trust
• a non-resident-owned investment corporation
• a person (other than a trust) all of whose taxable income is exempt from Part I tax
• a trust all of the taxable income of which for the year is exempt from Part I tax
• a registered investment
• a trust described in any of paragraphs (a) to (e.1) of the definition of “trust” in subsection 108(1) of the Act
• a trust in which all persons beneficially interested are persons described in at least 1 of the 6 preceding bullet points
• a partnership where the share of the partnership's income or loss attributable to non-resident members and/or members who are taxpayers referred to in any of the 7 preceding bullet points under the heading "specified Canadian entity” above is 90% or more of the income or loss of the partnership. (Note that where the income and loss of the partnership are nil for the period, the income of the partnership for the period is deemed to be $1,000,000 for the purpose of this determination.)

The following are considered excluded trusts. Distributions from these excluded trusts do not have to be reported:

• a trust governed by a foreign retirement arrangement, such as a U.S. Individual Retirement Account (IRA)
• a non-resident trust that meets all of the following conditions:
  • is resident in a country that imposes an income tax
  • is exempt from the payment of income tax in the country where it is resident
  • principally provides superannuation, pension, retirement, or employee benefits
  • is either maintained primarily for the benefit of non-resident individuals or is governed by an employee profit sharing plan
• a non-resident trust in respect of which the entity has to file any of the following:
  • Form T1134, Information Return Relating to Controlled and Non-Controlled Foreign Affiliates, for the year or period
  • Form T1135, Foreign Income Verification Statement, for the year or period
  • Form T1141, Information Return in Respect of Contributions to Non-Resident Trusts, Arrangements, or Entities, in respect of each taxation year of the trust that ends in the entity’s year
• Reinvested distributions from a non-resident mutual fund trust must be reported on Form T1135, Foreign Income Verification Statement, if the cost amount of the interest in the non-resident mutual fund trust, together with all other specified foreign property was more than CAN $100,000 at any time in the year. If Form T1135 is required to be filed and the investment in the non-resident trust is required to be reported as a specified foreign property of the entity, the entity does not have to file Form T1142 in respect of that distribution.
• An individual (other than a trust) is not required to file Form T1142 for the year in which the individual first becomes a resident of Canada.

What has to be reported and attached

Two types of basic information must be reported:

• identification of the non-resident trust, trustees, and settlors
• information regarding distributions received from and indebtedness owed to the non-resident trust
• The entity must attach any supporting documents they have relating to the information provided in sections A, B, or C, such as:
  • correspondence
  • agreements
  • contracts
  • deeds
  • reports
  • memoranda
  • emails
  • letters
  • records
  • promissory notes
  • loan agreements
  • similar related documents

Filing Deadline

The information return is due on or before:

• if the entity is not a partnership, the due date for the entity’s income tax return
• if the entity is a partnership, the same date that the partnership information return is due

If an income tax return or partnership information return does not have to be filed for the year, Form T1142 must still be filed on or before the date that would be the filing due date of the entity’s income tax or partnership information return.

Forms T1142 filed for the 2025 tax year before the new version was published

Entities that have already filed Form T1142 for the 2025 tax year using the previous version of the form, that is before the new version was published, will not have to refile using the new version. Any new filings must use the most recent version available.

Using the new version to change a previously filed Form T1142

For T1142 forms filed for the 2025 tax year before the new version was published, the CRA encourages taxpayers to use the most recent version of the form to make changes. However, as with other tax years, the CRA will accept changes sent using the same version of the form that was originally filed.

There are not enough rows or tables on the form to report the information

Form T1142 is available on the Canada.ca website in a standard PDF version and in a fillable PDF version.

The fillable PDF version of Form T1142 has several features and verification checks that ensure data integrity. It has one Summary Form and up to 20 supplements. This version also allows the user to add or remove rows or tables to many sections of the form, as needed.

The standard PDF version does not allow the user to add or remove rows or tables. If the entity is using the standard PDF version and has to fill in more than one row or table, they should attach a sheet to the form with the extra rows and tables. The rows and tables on the sheet must be in identical format as the rows and tables on Form T1142. The CRA will not accept other methods of providing the required information.

When a non-resident trust is otherwise reported as part of foreign reporting

A specified Canadian entity does not have to file Form T1142 if they have to file any of the following forms for the same non-resident trust in the same year:

• Form T1134, Information Return Relating to Controlled and Non-Controlled Foreign Affiliates
• Form T1135, Foreign Income Verification Statement
• Form T1141, Information Return in Respect of Contributions to Non-Resident Trusts, Arrangements, or Entities

Filing Form T1142 following the death of an individual

Form T1142 does not have to be filed in respect of a distribution of property from a non-resident estate during its administration that arose on and as a consequence of the death of an individual. However, once the estate has been administered, the Canadian beneficiary of any ongoing non-resident testamentary trust must file Form T1142 in any year where a distribution is received from the trust or where the Canadian beneficiary becomes indebted to the trust. 

Forms and publications

• Form T1142, Information Return in Respect of Distributions from and Indebtedness to a Non-Resident Trust