Statement of Trust Income Allocations and Designations

T3 Statement of Trust Income Allocations and Designations

Trusts use the T3 slip, Statement of Trust Income Allocations and Designations, to identify beneficiaries and to report amounts such as income and credits that the trust designates to them.

Recipient’s name and address

Enter the information in the white area provided. If the payment is to an individual, enter the beneficiary’s name. If the payment is to a joint beneficiary, enter both names. If the payment is made to a trust, enter the name of the trust but not the names of the individual beneficiaries of that trust. If the payment is made to an association, organization, or institution, enter that name. Following the beneficiary’s name, enter the beneficiary’s full address including city and province or territory. Also include the postal code.

Year

Enter the tax year at the top of the slip.

Trust year end

Use a four-digit number to indicate the year, and a two-digit number to indicate the month of the trust’s tax year-end.

High-use boxes

For your convenience, the instructions for the following boxes are in numeric order, even though the order on the slip may be different. The high-use boxes appear first, followed by the low-use boxes.

Box 12 – Recipient identification number

If the beneficiary is an individual (other than a trust), enter the individual’s social insurance number.

If the beneficiary is a business (sole proprietor, corporation or partnership), enter the 15 character program account number of the business.

If the beneficiary is a business (sole proprietor, corporation or partnership), enter the 15 character program account number of the business.

If the beneficiary is a trust, enter the trust account number.

Note: If you do not have the number, see the section called "Recipient identification number" in Guide T4013, T3 Trust Guide. Do not leave this box blank.

Box 14 – Account number

You have to enter the trust's account number, if we have assigned one. Do not leave this box blank. For security purposes, do not include the trust account number on the copies you provide to the beneficiary.

1 alpha, 8 numeric:

T3 slip, box 14, example: T00000000

trust account number assigned by the CRA

must correspond to the Trust account number on the related T3 Summary

If you have not been assigned such a number, enter T00000000 in the field

Box 16 – Report code

Enter one of the following codes:

Code	Type of Slip
O	Original
A	Amendment
C	Cancel

Box 18 – Beneficiary code

You have to enter one of the following codes to identify the type of beneficiary (do not leave this box blank):

Code	Type of beneficiary
1	an individual (other than a trust)
2	a joint beneficiary
3	a corporation
4	an association, a trust (fiduciary, trustee, nominee, or estate), a club, or a partnership
5	a government, a government enterprise, an international organization, a charity, a non-profit organization or other tax-exempt entity, or a deferred income plan that is exempt from tax

Box 21 – Capital gains

Enter the result of the beneficiary's share of the amount from line 921 of Schedule 9, multiplied by 2.

Box 23 – Actual amount of dividends other than eligible dividends

Enter the beneficiary’s share of the amount from line 923 of Schedule 9. If the beneficiary is an individual or a trust (other than a registered charity), see box 32 and box 39 for more instructions.

Box 26 – Other income

Enter the beneficiary's share of the amount from line 926 of Schedule 9.

Box 30 – Capital gains eligible for deduction

Only personal trusts complete box 30.

Enter the result of the beneficiary’s share of the amount from line 930 of Schedule 9, multiplied by 2. Do not include farming or fishing income from the disposition of eligible capital property identified in the footnote to box 26.

Where the trust has realized in its tax year both taxable capital gains which are eligible for a beneficiary’s capital gains deduction, and taxable capital gains that are not eligible, very generally, the rules ensure that a proportionate share of each of the eligible taxable capital gain, and the non-eligible taxable capital gain is allocated and designated to each beneficiary. Subsection 104(21.2) provides the formulas to determine the amount of eligible taxable capital gains to designate in respect of QFFP and QSBCS. Very generally, the effect of each of these formulas is that the amount designated to a particular beneficiary is equal to the beneficiary’s proportionate share of all the trust’s subsection 104(21) designations for the year to its beneficiaries in respect of its net taxable capital gains for the year, to the extent that the amount so calculated represents eligible taxable capital gains of the trust for the year from the disposition of QFFP or QSBCS (depending on which formula is being applied).

Box 32 – Taxable amount of dividends other than eligible dividends

If the beneficiary is an individual or a trust (but not a registered charity), enter the result of the amount of dividends other than eligible dividends from taxable Canadian corporations reported in box 23, multiplied by 1.15. Do not include negative amounts when completing box 32 of the T3 slip.

Box 39 – Dividend tax credit for dividends other than eligible dividends

If the beneficiary is an individual or a trust (other than a registered charity), enter 9.0301% of the amount in box 32.

Box 49 – Actual amount of eligible dividends

Enter the beneficiary's share of the amount from line 949 of Schedule 9.

Box 50 – Taxable amount of eligible dividends

If the beneficiary is an individual or a trust (other than a registered charity), enter the result of the amount of eligible dividends from taxable Canadian corporations reported in box 49, multiplied by 1.38.

Box 51 – Dividend tax credit for eligible dividends

If the beneficiary is an individual or a trust (other than a registered charity), enter 15.0198% of the amount in box 50.

Other information area

This area on the T3 slip has boxes for you to enter codes and less common amounts such as foreign business income, eligible death benefits, investment tax credits, and others.

The boxes are not pre-numbered as in the top part of the slip. Therefore, enter the codes that apply to the beneficiary.

If more than six codes apply to one beneficiary, use an additional T3 slip. Do not repeat all the data on the additional slip. Enter only the beneficiary's identification number and name, as well as the trust's name and account number, and complete the required boxes in the "Other information" area.

You do not have to give a breakdown by country on the T3 slip, nor do you have to file multiple T3 slips. However, it is your obligation and responsibility to give us such information on request. Your records have to provide enough details to identify each foreign country and the amount of business income, in Canadian dollars, from each country.

Low-use boxes

Box 22 – Lump-sum pension income

Enter the beneficiary spouse's or common-law partner's share of the amount from line 922 of Schedule 9.

Box 24 – Foreign business income

Enter the beneficiary's share of the amount from line 924 of Schedule 9 (before withholding taxes).

Box 25 – Foreign non-business income

Enter the beneficiary's share of the amount from line 925 of Schedule 9 (before withholding taxes).

Box 31 – Qualifying pension income

Enter the beneficiary spouse's or common-law partner's share of the amount from line 931 of Schedule 9. This amount is included in box 26.

Box 33 – Foreign business income tax paid

Enter the beneficiary's share of the amount from line 933 of Schedule 9.

Box 34 – Foreign non-business income tax paid

Enter the beneficiary's share of the amount from line 934 of Schedule 9.

Box 35 – Eligible death benefits

Enter the beneficiary's share of the amount from line 935 of Schedule 9. This amount is included in box 26.For more information, see "Line 935 – Eligible death benefits" in Guide T4013, T3 Trust Guide.

Box 37 – Insurance segregated fund net capital losses

Enter the result of the beneficiary's share of the amount from line 937 of Schedule 9, multiplied by 2.

Box 38 – Part XII.2 tax credit

Enter the beneficiary's share of the amount from line 938 of Schedule 9.For more information, see Schedule 10 – Part XII.2 Tax and Part XIII Non-Resident Withholding Tax in Guide T4013, T3 Trust Guide.

Boxes 40, 41 and 43 – Investment tax credit

Effective for 2016 and later years, only a graduated rate estate or a communal organization that is deemed to be an inter vivos trust may complete boxes 40, 41 and 43.For each type of property or expenditure made by the trust in the year that is eligible for investment tax credits (ITC), prepare a separate T3 slip for each designation to beneficiaries.

Box 40 – Investment cost or expenditures

Enter the beneficiary's share of the amount from line 940 of Schedule 9.

Box 41 – Investment tax credit

Enter the beneficiary's share of the amount from line 941 of Schedule 9.For more information, see "Lines 940 and 941 – Investment tax credit (ITC)" in Guide T4013, T3 Trust Guide.

Box 42 – Amount resulting in cost base adjustment

Enter the beneficiary's share of the amount from line 942 of Schedule 9. If this is a negative amount, put it in brackets.

Box 43 – Investment tax credit - Code number

Enter the applicable investment tax credit (ITC) code number (4B, 12, 6 or 7) and provide a statement to each beneficiary

Box 45 – Other credits

Research and development tax credit : Enter the beneficiary's share of the amount from line 945 of Schedule 9.

Box 46 – Pension income qualifying for an eligible annuity for a minor

Enter the beneficiary's share of the pension income that is eligible for a transfer to an eligible annuity for certain minors, from line 946 of Schedule 9 (also included in box 26).

Box 47 – Retiring allowance qualifying for transfer to an RPP or RRSP

Enter the beneficiary's share of the retiring allowance, which qualifies for a transfer to a registered pension plan or registered retirement savings plan, from line 947 of Schedule 9 (also included in box 26).

Box 48 – Eligible amount of charitable donations

Enter the beneficiary's share of the charitable donations or gifts of a communal organization, from line 948 of Schedule 9. For more information, see Information Circular IC78-5R3, Communal Organizations.

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