Is form CO-17.SP required when filing a tax return for a syndicate of co-owners?

In Quebec, the answer is YES. 

In most cases, this is because co-ownership syndicates are considered legal entities and non-profit organizations (NPOs). If you're not sure about the status of your syndicate, check its profile on the Registraire des entreprises du Québec (REQ) website or consult your notary. If the Quebec business number (NEQ) begins with the digits 11, the syndicate is a legal entity. This means that the syndicate of co-owners must complete forms CO-17.SP for Revenu Québec and T2, schedules 100, 125, 141, and often form T1044 for the Canada Revenue Agency.

Here is the Revenu Québec link to form CO-17.SP:

Income tax and information return for not-for-profit corporations

Register your union

If your association is not listed on the REQ site, contact the notary who created it to find out why. Otherwise, click on the following links to find out how to register your co-ownership community on REQ, or consult a notary or lawyer.

Once you've registered on the REQ, contact the Canada Revenue Agency to obtain your business numbers and Revenu Québec for identification numbers.

Annual update declaration

You must also complete the union's annual update declaration on the REQ website. However, if all of the union's information is current on the REQ website, you file your CO-17.SP by the deadline, and you answer YES to the question in box 39, the annual update declaration will be considered complete.

Other forms you may need to complete

You must complete Section 3 of Form CO-17.SP if any of the following apply

• During the taxable year, the corporation received or was entitled to receive taxable dividends, interest, rents, or royalties, the total of which exceeded $10,000;
• At the end of the previous fiscal year, the total value of the company's assets, determined in accordance with generally accepted accounting principles, exceeded $200,000;

The entity was required to file such an information return for a previous fiscal year.

Deadlines

These forms must be completed within 6 months of the union's fiscal year end. Failure to complete them can result in penalties of up to $2,500 for each return not filed.

So be vigilant and make sure your union's officers are meeting their obligations. We hope this article has answered any questions you may have. Don't hesitate to contact us if you would like to outsource this work.

Happy filing!