Special situation – member of communal organization

A communal organization has members who:

  • Live and work together;
  • Operate a business for the purpose of supporting its members;
  • Do not own property in their own right as a matter of religious conviction; and
  • Devote their working lives to activities of the congregation

The property of the congregation and all its business agencies is deemed to belong to a trust. An election can be made to allocate all of the trust’s modified taxable income among the families in the congregation. The trust has to complete a T3: Statement of Trust Income Allocations and Designations slip for each specified adult receiving the income.

The adult members specified in the election have to file a tax return if the trust allocated taxable capital gains, if the member is required to make contributions to the Canada Pension Plan (CPP), or if tax is payable by the member for the year. The tax return must be filed by April 30.

 

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