Must syndicate of co-owners file income tax return? | ScriptaLegal
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Frequently asked questions > Co-ownership/Condominium > Syndicate of co-owners > Does the syndicate of co-owners have to file an income tax return?

Does the syndicate of co-owners have to file an income tax return?

The syndicate of co-owners is a legal person and is required, as such, to make an Information and Income Tax Return .

In Quebec, the non-profit corporation is exempted from income tax and tax on capital when it presents the following characteristics:

  • it is exclusively formed and operated in a non-profit making purpose;
  • it is not a charity;
  • it must pay no part of its income to an owner, to one of its members (whether it involves individuals or societies) or to one of its shareholders, and must make no part of its income at their personal disposal, unless the owner, member or shareholder is a club or an association whose main object is to promote the amateur sport in Canada.

In Quebec, it is usually the case for the syndicates of co-owners. The syndicate of co-owners will thus have to complete the form CO-17.SP-T  within six months following the end of its fiscal year. The form must be submitted within the prescribed time period and that, without waiting to receive a formal notice.

The preparation of the Information and Income Tax Return will remind to the directors of the syndicate that they must look after the annual update of the syndicate with the Québec enterprise registrar since the first information required will be the NEQ of the syndicate. For more information, see the procedure to be adopted to achieve the "establishment" of the syndicate of co-owners.

For the Canada Revenue Agency, the fiscal situation of the syndicates of co-owners is similar to the one prevailing in Quebec.

The syndicates of co-owners are considered as non-profit organizations. As such, those are exempted from the tax of Part I on the taxable income, but those are nevertheless required to complete a Non-Profit Organization Information Return T1044. The latter too must be submitted within six months following the end of the fiscal year of the syndicate. The directors of the syndicate of co-owners can consult the document "Income Tax Guide to the Non-Profit Organization Information Return" available on the website of the Canada Revenue Agency.

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