What is RL-27 Slip – Government Payments

What is RL-27 Slip – Government Payments

The RL-27 slip must be filed by any department or agency of the Gouvernement du Québec that made contractual payments or paid a subsidy.

Purpose of the RL-27 slip

The RL-27 slip is used to report amounts (other than excluded amounts) paid to an individual, a trust, a corporation or a partnership as assistance in relation to the cost of property, an outlay or an expenditure or as an incentive:

respecting the operation of a business or property by this beneficiary; or

respecting medical expenses that give entitlement to the tax credit for medical expenses.

The RL-27 slip is also used to report amounts (other than excluded amounts) paid to cover the cost of:

a business or service contract;

a transportation contract;

a mandate contract;

a contract respecting the consumption of food or beverages;

a contract covering a business, a service, a mandate or transportation and the sale or lease of property, unless the cost of such a contract represents all or substantially all (90% or more) of the value of the property sold or leased under this contract.

How to Complete the RL-27 Slip (Box by Box Instructions)

Box A

Contractual payments. These are amounts received in payment of a service rendered, or in payment of a service rendered and the acquisition or lease of property. They do not include amounts received in the year entirely or almost entirely (90% or more) for the acquisition or lease of property

The amount in box A, which does not include goods and services tax (GST) or Québec sales tax (QST), must be used to calculate the business income to be reported in the recipient’s income tax return (line 164 of an individual’s income tax return). For more information, refer to guide IN-155-V, Business and Professional Income.

Box B

Subsidies. These are amounts received as assistance in relation to the cost of property, an outlay or an expenditure, or as incentives. The assistanceor incentive may be in the form of a grant, a subsidy, a forgivable loan, an allowance or a government transfer payment.

You must use the amount in box B to calculate the amount of business or property income to be entered in your income tax return or, if the amount is related to medical expenses, to calculate your tax credit for medical expenses. The amount in box B may be used, as applicable, to reduce the cost of property or expenditures, or to increase income.

Box marked “Type de bénéficiaire” (type of recipient)

Individual or trust

Corporation

Partnership

Individual (or trust), corporation or partnership that is a holder of a joint account or co-recipient of payments

Individual (or trust), corporation or partnership that is part of a consortium or joint venture

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca