Non-Profit Corporations - Guide to the Income and Information Return

About this content

This content is a plain-language rewording of the official Revenu Québec publication: CO-17.SP.G(2023-12).pdf, produced to help citizens and entrepreneurs better understand their tax obligations. It does not constitute legal or tax advice. Refer to the official document for any decision.

Who this document is for

This guide is intended for persons who must complete the Income and Information Return for Non-Profit Corporations (CO-17.SP) for a non-profit corporation that is exempt from income tax in Quebec. It is intended in particular for:

• non-profit corporations exempt from income tax;
• directors, officers, authorized representatives or preparers who complete the return for these corporations;
• corporations that must file an income return, provide certain tax information and, where applicable, pay the annual registration fees related to the enterprise register. The CO-17.SP form is not intended for all non-profit corporations. When a non-profit corporation is not exempt from income tax, it must instead file the Corporation Income Tax Return (CO-17). If it is claiming a tax credit or is subject to a tax other than income tax, the CO-17.SP form must not be used.

Context and purpose

This guide explains how to complete the annual return that certain non-profit corporations must file with Revenu Québec. It accompanies the CO-17.SP form and serves to clarify the information to be entered line by line. The form allows a non-profit corporation exempt from income tax to combine, in a single process, several obligations:

• file an income return;
• file the information required of tax-exempt entities, without having to file separately the Information Return of Tax-Exempt Entities (TP-997.1) when the CO-17.SP form applies;
• pay the annual registration fees provided for under the Act respecting the legal publicity of enterprises, when those fees are due. The guide is also linked to several legislative frameworks, including:
• the Taxation Act;
• the Tax Administration Act;
• the Act respecting the legal publicity of enterprises;
• the rules concerning the protection of confidential and personal information. The legal references shown in italics in the original document refer, as applicable, to the sections of these Acts. Numbers without a prefix refer to the Taxation Act; numbers preceded by LAF refer to the Tax Administration Act; numbers preceded by LPLE refer to the Act respecting the legal publicity of enterprises. The document specifies that it does not constitute an official legal interpretation of Quebec or Canadian statutes and regulations. It is therefore up to users to verify that the information applied corresponds to the tax texts in force.

Complete and detailed information

1. General structure of the official guide

The guide is divided into five main parts:

1. Introduction This part presents the guide and specifies for which legal persons the CO-17.SP form must be completed.

2. General information This part deals with the rights and obligations of non-profit corporations, the protection of confidential information, the transmission of information to an authorized person and filing using software.

3. Line-by-line explanations This part explains the fields of the CO-17.SP form, including identification information, information about the corporation, sections specific to tax-exempt corporations and the signature.

4. Mailing the documents This part gives the order in which documents must be presented when the return is mailed.

5. Records and supporting documents This part explains the obligations to keep books, records and supporting documents. The document also mentions that Revenu Québec prefers, where context allows, the use of neutral or epicene wording.

2. Corporations for which the CO-17.SP form must be used

In the guide, the term corporation means a legal person. The CO-17.SP form must be used only for a non-profit corporation that is exempt from income tax.

2.1 Situations where the CO-17.SP form must not be used

The CO-17.SP form must not be used in the following situations:

• the non-profit corporation is not exempt from income tax;
• the corporation is claiming a tax credit;
• the corporation is subject to a tax other than income tax;
• the corporation was a registered charity throughout its taxation year. In these cases: | Situation | Form to use | |---|---| | Non-profit corporation not exempt from income tax | Corporation Income Tax Return (CO-17) | | Exempt non-profit corporation claiming a tax credit | CO-17, and possibly TP-997.1 | | Exempt non-profit corporation subject to a tax other than income tax | CO-17, and possibly TP-997.1 | | Registered charity throughout the taxation year | Information Return of Registered Charities and Other Donees (TP-985.22) | | Amendment to a return already filed | Request for Adjustment of an Income Return or an Income and Information Return (CO-17.R) |

3. Conditions for income tax exemption for a non-profit corporation

A non-profit corporation may be exempt from income tax for a given period only if it meets all the following conditions during that period:

• it is constituted and operated exclusively for non-profit purposes;
• it is not a charity;
• it does not distribute any part of its income to an owner, member or shareholder;
• it does not make any part of its income available for the personal benefit of an owner, member or shareholder. An exception exists when the owner, member or shareholder is a club or association whose main objective is to promote amateur sport in Canada. The related legal references in the document are sections 986 and 996. The guide specifies that exemption cannot be determined solely from the name or form of the corporation. Its objects and actual activities must be analyzed to determine whether it is formed and administered exclusively for a non-profit purpose.

4. Deadline for filing the return

The income and information return must be filed with:

• the financial statements;
• the auditor’s report, if applicable. All of this must be filed within six months after the end of the corporation’s taxation year. The legal references mentioned are sections 997.1 and 1000.

5. Corporation’s rights regarding its information

Subject to the exceptions provided for in the Tax Administration Act, a corporation has the right:

• to obtain information concerning it;
• to consult the documents containing that information;
• to request correction of inaccurate information.

6. Protection and use of confidential information

Revenu Québec states that the corporation’s information is protected in accordance with:

• the Tax Administration Act;
• the Act respecting access to documents held by public bodies and the protection of personal information. Information obtained in an income and information return or otherwise is treated as confidential.

6.1 Comparison, matching and file matching

For the purposes of applying tax laws, Revenu Québec may:

• compare its information files;
• match them;
• pair them. These operations are used to verify whether the corporation complies with the obligations provided for in tax legislation.

6.2 Possible uses of the information

The information may be used to:

• apply the laws administered by Revenu Québec;
• administer certain socio-tax programs;
• conduct studies;
• carry out research;
• perform surveys;
• produce statistics.

6.3 Internal access to information

Only Revenu Québec staff members who have the necessary authorization may consult confidential information. Access is limited to cases where such information is necessary for the performance of their duties.

6.4 Disclosure of information to third parties without consent

Within the limits provided by law, Revenu Québec may transmit, without consent, information from the corporation’s tax file to certain ministries, bodies or persons when such information is necessary:

• for the application of a law;
• for the administration of a program;
• for certain specific purposes provided for in applicable laws.

6.5 Bodies and persons who may receive information

The document lists the following possible recipients:

• Public Markets Authority;
• Commissioner for Ethics and Deontology;
• Commissioner for the Fight Against Corruption, associate commissioners for verifications and verification or investigation teams designated by the government under the Act respecting the fight against corruption;
• Quebec Lobbying Commissioner;
• Commission d’accès à l’information;
• Commission des normes, de l’équité, de la santé et de la sécurité du travail;
• Quebec Transport Commission;
• Indigenous communities, for the application of agreements between the Government of Quebec and a band council;
• Comptroller of Finance;
• Chief Electoral Officer of Quebec;
• Canadian or foreign governments, ministries or bodies, including the Canada Revenue Agency, as well as international organizations, notably for the application of tax agreements, the enforcement of tax laws, the avoidance of double taxation or the implementation of international tax agreements;
• Institut de la statistique du Québec;
• Ministry of Agriculture, Fisheries and Food;
• Ministry of Education;
• Ministry of Employment and Social Solidarity;
• Ministry of Higher Education;
• Ministry of the Family;
• Ministry of Municipal Affairs and Housing;
• Ministry of Finance;
• Ministry of International Relations and La Francophonie;
• Ministry of Natural Resources and Forests;
• Ministry of Tourism;
• ministries or bodies responsible for making a decision or issuing or revoking a certificate, visa or similar document for the application of a tax law;
• Office québécois de la langue française;
• public body designated as the official source of government digital data;
• public bodies subject to government compensation;
• Public Protector;
• Régie de l’assurance maladie du Québec;
• Régie du bâtiment du Québec;
• Registraire des entreprises;
• Retraite Québec;
• Société de l’assurance automobile du Québec;
• Auditor General of Quebec.

6.6 Conditions governing the disclosure of information

Before confidential information is disclosed, the necessity of the disclosure must be demonstrated and assessed according to the legal provisions authorizing it. Except in the case of an exception, when information is transmitted to ministries, bodies or persons covered by the Tax Administration Act, this disclosure takes place under written agreements approved by the Commission d’accès à l’information. The Commission examines in particular:

• the nature of the information disclosed;
• the objectives pursued by the disclosure;
• the means used to transmit the information;
• the security measures and mechanisms intended to protect confidentiality;
• the frequency of disclosures;
• the means provided to inform the persons concerned;
• the duration of the agreements.

6.7 Destruction of confidential documents

Documents containing confidential information are destroyed when the purpose for which they were collected has been achieved, subject to the periods provided for by law or by the applicable retention schedule.

7. Authorization to disclose information or power of attorney

A corporation may authorize a person:

• to represent it;
• to obtain information about its tax file. Revenu Québec may transmit to that person information related to the income and information return if the corporation has given its authorization. Authorization may be given:
• using Revenu Québec’s online services;
• using the form Authorization to Disclose Information or Power of Attorney (MR-69). The authorization or power of attorney takes effect on the date the form is signed. It remains valid:
• for an indefinite period; or
• until the end date indicated on the form, if such a date is entered. To end an authorization or power of attorney already granted, use:
• the applicable online services; or
• the form Revocation of an Authorization to Disclose Information or of a Power of Attorney (MR-69.R).

8. Filing the return using software

The CO-17.SP return may be completed using commercial software authorized by Revenu Québec. An authorized software product may allow:

• printing the return for mailing;
• transmitting the return over the Internet, if the software is also certified for such transmission. The publication mentioned for further details is Information for Users of Software for Producing Corporate Tax Forms (IN-417.A).

9. Line-by-line explanations of the CO-17.SP form

9.1 Corporation identity information — lines 01a to 03c

Line 01a — Quebec enterprise number (NEQ)

The Quebec enterprise number (NEQ) is assigned by the Registraire des entreprises to businesses that carry on or wish to carry on activities in Quebec. It facilitates interactions between the business and Quebec government ministries or bodies. The NEQ must be entered on line 01a.

Line 01b — Identification and file numbers

The identification and file numbers are used to identify the corporation in Revenu Québec’s systems. It is therefore important to enter this information correctly. The identification number contains 10 digits. It must be entered to the left of the file number IC 0001, which already appears on the form.

Line 01c — Federal business number (NE)

The corporation’s federal business number must be entered on line 01c. This number corresponds to the one shown on line 001 of the federal corporation income tax return, namely form T2.

Lines 02, 03, 03a, 03b and 03c — Name and address of the corporation

The name and address of the corporation must be entered on lines 02, 03, 03a, 03b and 03c. If the corporation’s address has changed since the last return, the corporation must change its address using the services provided for that purpose. Even if that change was made separately, the new address must still be entered in the return on lines 03, 03a, 03b and 03c. The assessment notice, namely form COR-384 or COR-385, is sent to the address of the corporation’s head office. This notice includes a payment slip when applicable.

9.2 Corporation information — lines 05 to 211

Line 05 — End date of the fiscal period covered

A corporation’s taxation year corresponds to its fiscal period. This fiscal period cannot exceed 53 weeks. The end date of the fiscal period covered must be entered on line 05. It must correspond to the date entered on line 061 of the federal T2 return. To confirm this match, the box 05a must be checked. The legal references mentioned are sections 1 and 7, paragraph 3.

Line 06 — Date business activities began in Quebec for a first return in Quebec

When the return filed is the corporation’s first return in Quebec, the date business activities began in the province must be entered.

The opening balance sheet must also be attached. Depending on the situation, the following must also be attached:

• a copy of all agreements relating to the issuance of shares for consideration other than cash, or a copy of all documents detailing those agreements;
• the closing balance sheet of any sole proprietorship, partnership or corporation acquired by the corporation;
• a copy of the constituting documents if the corporation holds a charter that is neither from Quebec nor from Canada. The number CO-17.SP.36 must be entered in the upper right corner of each of these documents.

Line 08 — End date of the previous fiscal period

If the fiscal period covered is not the corporation’s first fiscal period, the end date of the previous fiscal period must be entered.

Line 09 — Incorporation date

Every corporation must indicate its incorporation date. This date must be entered in the space provided.

Line 17 — Gross income of the corporation

The corporation’s gross income for the taxation year must be entered. Gross income corresponds to all amounts received or receivable during the taxation year, except amounts received as capital. These amounts must be determined according to:

• generally accepted accounting principles; or
• International Financial Reporting Standards, as applicable. Certain amounts are excluded from gross income because they are capital in nature, including:
• a capital gain;
• a recapture of depreciation related to the sale of depreciable property;
• a tax credit intended to compensate for a capital expense;
• a foreign exchange gain considered a capital item. Dividends are included in gross income only when they are cashed. Interest is included in gross income, whether it comes:
• from property;
• from a business.

Line 18 — Total assets according to the financial statements

The total assets shown in the corporation’s financial statements must be entered on line 18.

Line 19 — Total income from property

The total income from property for the taxation year must be entered. The most common types of income from property include:

• interest;
• dividends;
• royalties;
• rental income.

Line 20 — Main purpose of the corporation

If the box “Yes” is checked on this line, the Trust Income Tax Return (TP-646) must also be filed. This requirement exists because a corporation whose main purpose is to provide its members with facilities for:

• recreation;
• sport;
• meals; is deemed to act as a trustee with respect to certain property. It then becomes taxable for that aspect. In this case, a trust is created. To calculate the income and taxable income of this trust, only the following elements must be taken into account:
• income and losses from property;
• capital gains and capital losses related to property that was not used exclusively and directly for the corporation’s main purpose. A deduction of $2,000 may be applied in calculating the taxable income of this trust. The legal reference mentioned is section 997.

Lines 22 and 22a — Farming income

If the corporation earned farming income during the taxation year:

• “Yes” must be checked on line 22;
• the amount of gross farming income must be entered on line 22a. The gross farming income entered on line 22a is already included in the gross income reported on line 17.

Line 32 — Corporation’s industry sector

The code of the North American Industry Classification System (NAICS) corresponding to the corporation’s main activities must be entered. NAICS codes are hierarchical numerical codes used to define and describe businesses’ industrial and commercial activities in a common way.

Line 39 — Confirmation or update of information in the enterprise register

Every corporation must confirm or update the information concerning it in the enterprise register within the same period allowed for filing the income and information return, namely within six months after the end of its taxation year. On line 39, it must be indicated whether the information in the register is accurate:

• if the information is accurate, “Yes” must be checked;
• if information must be added or changed, “No” must be checked, and the update must then be made in the enterprise register. The information that the corporation must report and keep up to date includes in particular:
• the name and home address of each director;
• the start and end dates of the directors’ terms of office;
• the existence or absence of a unanimous shareholder agreement concluded under a Quebec law or another legislative authority in Canada, when that agreement limits or removes the powers of the directors;
• the name and home address of the shareholders or third parties who exercise the powers of the board of directors under a unanimous shareholder agreement;
• since March 31, 2023, information concerning ultimate beneficiaries;
• the fact that the corporation is bankrupt. The document specifies that the corporation must pay its registration fees every year, whether or not there are changes to the enterprise register.

Lines 42, 42a and 42b — Winding up of subsidiaries

If the corporation wound up one or more subsidiaries during the taxation year, it must:

• check “Yes”;
• enter the NEQ or identification number of each wound-up subsidiary;
• enter the date each subsidiary was wound up.

Line 200 — Names of directors

Information concerning the corporation’s three main directors must be entered:

Column	Information to enter
First column	Name
Second column	Social insurance number
Third column	Title or position

Line 210 — Name of the contact person

The name and telephone number of the person who can answer questions concerning:

• the income and information return;
• the documents attached to the return, must be entered.

Line 211 — Address where the books and records are kept

If the accounting books and records are not kept at the address shown on line 03, the other address must be entered on line 211.

Line 441b — Registration fees

The corporation must pay registration fees every year, except:

• in the year of its first registration;
• in the year following that first registration. These fees are indexed every year on January 1. The amount of the fees payable must be entered on line 441b. The annual registration fees must be paid to the Minister of Revenue of Quebec no later than the last day of the second month following the end of the corporation’s taxation year. If the corporation wishes to pay these fees before filing its income and information return, it must attach payment slip COZ-1027.S to the cheque or money order. The legal references mentioned are sections LPLE 82 to 85.

Line 435 — Amount paid

If the corporation has a balance owing, the amount of the payment made must be entered on line 435. Payment may be made:

• by Internet;
• at the counter of the corporation’s financial institution;
• by cheque;
• by money order.

Payment by Internet

A corporation’s tax balance may be paid by Internet using the online payment service of a financial institution, using the payment code provided to the corporation. A payment may also be made by pre-authorized debit if the following conditions are met:

• the return is filed using commercial software authorized by Revenu Québec;
• the corporation has authorized the withdrawal of the amounts owed;
• the authorization is given using the form Payor’s Pre-Authorized Debit Agreement – Business PAD (LM-2.DP).

Payment at the counter of the financial institution

Payment may be made at the corporation’s financial institution counter. Payment slip COZ-1027.S, attached to the monthly remittance statement sent for the taxation year concerned, must be used. If this slip is not available, it can be ordered.

Payment by cheque or money order

The cheque or money order must be made payable to the Minister of Revenue of Quebec. On the front, the following must be written:

• the corporation’s NEQ;
• its identification and file numbers;
• the end date of the fiscal period, with the month written in uppercase letters;
• a legible corporate name. If the return is mailed, the cheque or money order must be attached to payment slip COZ-1027.P and enclosed with the return. If the return is filed over the Internet, the cheque or money order must be accompanied by slip COZ-1027.P and sent separately. When slip COZ-1027.P is not available, slip COZ-1027.S may be used. If the return is mailed and neither of these slips is available, the cheque or money order must be attached to page 1 of the return.

10. Part of the form reserved for tax-exempt corporations

Part 3.3 Tax-Exempt Corporation of the form must be completed only if:

• the corporation is tax-exempt; and
• it is in one of the situations described in form CO-17.SP. If this part is completed for a taxation year, it must also be completed for all subsequent taxation years. In some cases, the corporation will instead have to complete the Information Return of Tax-Exempt Entities (TP-997.1). If the corporation is not in one of the situations covered, it must move directly to part 4 of the form.

10.1 Amounts received or receivable for the fiscal period

Line 501 — Member dues and membership fees

The total of dues and membership fees received from members during the taxation year must be entered. This line includes in particular:

• club membership fees;
• professional association dues;
• member contributions.

Line 502 — Grants and government payments

The total of grants and payments received during the taxation year from:

• municipalities;
• ministries and agencies of the Government of Canada;
• ministries and agencies of the government of any province, must be entered. This line includes in particular:
• agricultural support grants;
• industrial support grants;
• grants promoting the arts.

Line 503 — Interest, taxable dividends, rents or royalties

The total amounts received during the taxation year in respect of:

• interest;
• taxable dividends;
• rents;
• royalties, must be entered. No rental expense must be deducted from this income. Amounts received from abroad in respect of:
• interest;
• taxable dividends;
• rents;
• royalties, must also be included. Foreign amounts must be entered in Canadian dollars using the exchange rate applicable on the date the amounts were received. Source tax withheld on these amounts must not be deducted.

Interest

All interest received during the taxation year must be included, even if no information slip was received. Interest may come in particular from:

• bank accounts;
• bonds;
• mortgages;
• other loans;
• transactions between related persons.

Taxable dividends

The actual amount of taxable dividends received must be included:

• from corporations resident in Canada;
• from foreign corporations not resident in Canada.

Rents

All income from the rental of property during the taxation year must be included. No rental expense must be deducted.

Royalties

All royalties received during the taxation year must be included.

Line 504 — Proceeds of disposition of capital property

The proceeds of disposition of capital property that the corporation received or is entitled to receive must be entered. Capital property may include:

• land;
• buildings;
• securities;
• works of art. As a general rule, the proceeds of disposition correspond to the selling price of the property on the date of sale. They may also correspond to compensation received for property that was:
• damaged;
• stolen;
• destroyed;
• expropriated. When the proceeds of disposition are not a monetary amount, the fair market value of the property or services received or receivable must be entered.

Line 505 — Sales and gross proceeds from the corporation’s activities

The total sales and gross proceeds from all the corporation’s activities during the taxation year must be entered. This line includes in particular proceeds from:

• programs;
• services;
• fundraising campaigns. No related expense must be deducted.

Line 506 — Gifts

The total gifts received during the taxation year must be entered. This line includes in particular:

• gifts from abroad;
• capital gifts received through succession;
• gifts received from other organizations.

Line 518 — Other amounts

The total of other amounts received during the taxation year must be entered. The nature of these amounts must be specified in the space provided on the form.

10.2 Statement of assets and liabilities at the end of the fiscal period

General rule for valuing assets

On lines 531 to 548, all the corporation’s assets must be reported based on their acquisition cost. If another valuation method is used, it must be explained in an appendix.

Assets

Line 531 — Cash and short-term investments

The total of:

• cash;
• short-term investments; available to the corporation at the end of the taxation year must be entered. Cash includes:
• cash on hand;
• cash on deposit. Short-term investments include in particular:
• Treasury bills;
• term deposits. Any investment maturing in one year or less is considered a short-term investment.

Line 532 — Amounts receivable from members

The total amounts members owe to the corporation at the end of the taxation year must be entered. This includes:

• secured loans;
• unsecured loans;
• amounts owing for the sale of the corporation’s property or services to its members.

Line 533 — Amounts receivable from any other person

The total amounts owed to the corporation by persons who are not members at the end of the taxation year must be entered. This includes:

• secured loans;
• unsecured loans;
• amounts owing for the sale of property or services to those persons. Amounts already included on line 532 must not be entered on this line.

Line 534 — Prepaid expenses

The total prepaid expenses at the end of the taxation year must be entered. Examples given include:

• prepaid rent;
• prepaid insurance.

Line 535 — Inventories

The following must be entered:

• the cost of merchandise in inventory at the end of the taxation year;
• the cost of work in progress at the end of the taxation year. The cost of supplies or other items not normally intended for sale must not be included.

Line 536 — Long-term investments

The total long-term investments at the end of the taxation year must be entered. Long-term investments include in particular:

• shares;
• notes;
• bonds;
• other securities. Any investment maturing in more than one year is considered a long-term investment.

Line 537 — Capital property

The book value of capital property at the end of the taxation year must be entered. For depreciable property, the book value corresponds to the cost of the property less accumulated depreciation. For any other property, the book value corresponds to the cost of the property. Capital property includes in particular:

• land;
• buildings;
• equipment.

Line 548 — Other assets

The book value of other assets at the end of the taxation year must be entered. Their nature must be specified in the space provided.

Liabilities

Line 561 — Amounts payable to members

The total amounts the corporation owes to its members at the end of the taxation year must be entered. This includes:

• secured loans;
• unsecured loans;
• wages payable;
• payments to be made for property and services received.

Line 562 — Amounts payable to any other person

The total other debts of the corporation to bodies or persons other than its members must be entered. This includes in particular:

• secured loans;
• unsecured loans;
• notes;
• wages payable to persons who are not members;
• grants payable. Amounts already included on line 561 must not be entered on this line.

10.3 Remuneration

Line 581 — Total paid to employees, officers and managers

The total amounts paid during the taxation year, in the form of remuneration or benefits, to all employees, officers and managers of the corporation must be entered. This also includes persons who are members or who were members. Examples given include:

• salaries;
• commissions;
• bonuses;
• fees;
• travel expenses;
• personal transportation expenses;
• benefits related to home loans.

Line 585 — Total paid to employees, officers and managers who are members

The total amounts paid during the taxation year, in the form of remuneration or benefits, to employees, officers and managers who are members of the corporation or were members at some point during the year must be entered. Examples given include:

• salaries;
• commissions;
• bonuses;
• fees;
• travel expenses;
• personal transportation expenses;
• benefits related to home loans.

Line 589 — Other amounts paid to members

The total of all other payments made to members during the taxation year must be entered when those payments do not fall:

• within the normal course of employment;
• within the normal course of a business transaction. Amounts already entered on lines 581 and 585 must not be included on line 589.

Line 590 — Number of members of the corporation

The number of members the corporation had at the end of the taxation year must be entered.

Line 595 — Number of members who received remuneration or any other amount

The number of members who, during the taxation year:

• received remuneration;
• received other payments;
• received benefits, must be entered.

11. Signature of the return

The income and information return must be signed by an authorized representative of the corporation. The person signing must also enter:

• their name in uppercase letters;
• their title in uppercase letters;
• their telephone number;
• the date of signature. Persons who may sign as authorized representatives include:
• the chairperson;
• the vice-chairperson;
• the secretary;
• the treasurer;
• any other person duly authorized by the board of directors. The legal reference mentioned is LAF 58.

Special cases and exceptions

Non-profit corporation not exempt from tax

A non-profit corporation that is not exempt from income tax must not use the CO-17.SP form. It must file the CO-17 return.

Exempt corporation claiming a tax credit

Even if it is non-profit and exempt from income tax, a corporation claiming a tax credit must file form CO-17 rather than form CO-17.SP. It must also file form TP-997.1, if applicable.

Exempt corporation subject to a tax other than income tax

An exempt non-profit corporation that must pay a tax other than income tax must use form CO-17 rather than form CO-17.SP. Form TP-997.1 may also be required.

Registered charity all year

If the corporation was a registered charity throughout the taxation year, it must file form TP-985.22.

Amendment to a return already filed

To correct or amend a return already filed, form CO-17.R must be used.

Corporation whose main purpose is to provide recreation, sport or meal facilities

A corporation whose main purpose is to provide its members with facilities for recreation, sport or meals is considered a trustee for certain property. It must then file the Trust Income Tax Return (TP-646). In this situation:

• only certain income, losses, gains and capital losses are taken into account;
• a deduction of $2,000 is allowed in calculating the trust’s taxable income.

Exception related to income distribution

A tax-exempt non-profit corporation generally may not distribute or make its income available for the personal benefit of an owner, member or shareholder. An exception exists when that owner, member or shareholder is a club or association whose main purpose is to promote amateur sport in Canada.

First return in Quebec

When this is the corporation’s first return in Quebec, additional documents may be required, including the opening balance sheet and, depending on the case, share issuance agreements, a closing balance sheet of an acquired entity or constituting documents.

Payment of registration fees

Registration fees are payable every year, except:

• in the year of first registration;
• in the year following that first registration. They remain payable even if no changes are made to the enterprise register information.

Returns filed over the Internet

If the return is filed over the Internet, the following must not be mailed:

• the documents relating to that return;
• a paper copy of the return.

Procedures

1. Verify that the CO-17.SP form is the correct form

Before completing the form, it must be determined whether the corporation:

• is a non-profit corporation;
• is exempt from income tax;
• is not a registered charity throughout the year;
• is not claiming a tax credit;
• is not subject to a tax other than income tax. If one of these conditions is not met, another form may be necessary.

2. Prepare the documents to attach

The return must be accompanied by:

• the financial statements;
• the notes to the financial statements;
• the auditor’s report, if applicable. For a first return in Quebec, the opening balance sheet must also be attached and, depending on the

situation:

• documents relating to share issuances for non-monetary consideration;
• the closing balance sheet of a sole proprietorship, partnership or acquired corporation;
• the constituting documents if the charter is neither from Quebec nor from Canada. The number CO-17.SP.36 must be entered in the upper right corner of each of these additional documents.

3. Fill in the identification information

The following must be entered:

• the NEQ on line 01a;
• the 10-digit identification number and the file number on line 01b;
• the federal business number on line 01c;
• the name and address of the corporation on lines 02, 03, 03a, 03b and 03c.

4. Fill in the corporation information

The following must be entered in particular:

• the end date of the fiscal period on line 05;
• confirmation that it matches the federal return on line 05a;
• the date business activities began in Quebec on line 06, if applicable;
• the end date of the previous fiscal period on line 08, if applicable;
• the incorporation date on line 09;
• gross income on line 17;
• total assets on line 18;
• income from property on line 19;
• the main purpose on line 20;
• farming income on lines 22 and 22a, if applicable;
• the NAICS code on line 32;
• the status of the information in the enterprise register on line 39;
• information on wound-up subsidiaries on lines 42, 42a and 42b, if applicable;
• information on the three main directors on line 200;
• the contact person on line 210;
• the address where books and records are kept on line 211, if different from the main address;
• registration fees on line 441b;
• the payment made on line 435, if there is a balance owing.

5. Complete the tax-exempt corporation part, if applicable

If the corporation must complete this part, it must report:

Amounts received or receivable

• line 501: dues and membership fees;
• line 502: grants and government payments;
• line 503: interest, taxable dividends, rents and royalties;
• line 504: proceeds of disposition of capital property;
• line 505: sales and gross proceeds from activities;
• line 506: gifts;
• line 518: other amounts, with description.

Assets

• line 531: cash and short-term investments;
• line 532: amounts receivable from members;
• line 533: amounts receivable from other persons;
• line 534: prepaid expenses;
• line 535: inventories;
• line 536: long-term investments;
• line 537: capital property;
• line 548: other assets, with description.

Liabilities

• line 561: amounts payable to members;
• line 562: amounts payable to other persons.

Remuneration and members

• line 581: remuneration and benefits paid to all employees, officers and managers;
• line 585: remuneration and benefits paid to employees, officers and managers who are members;
• line 589: other payments made to members;
• line 590: number of members at year-end;
• line 595: number of members who received remuneration, another amount or benefits.

6. Sign the return

An authorized person must sign the return and enter:

• their name;
• their title;
• their telephone number;
• the date. The signature may be given by one of the authorized persons mentioned in the guide, including a chairperson, vice-chairperson, secretary, treasurer or another person authorized by the board of directors.

7. Pay the balance or amounts due

Depending on the case, payment may be made:

• by Internet;
• at the counter of the financial institution;
• by cheque;
• by money order. The slips mentioned are:
• COZ-1027.P;
• COZ-1027.S. Form LM-2.DP is used to authorize a business pre-authorized debit.

8. Mail the documents, if the return is filed on paper

When the return is mailed, the documents must be placed in the following order:

1. the cheque or money order made payable to the Minister of Revenue of Quebec;
2. the form Authorization to Disclose Information or Power of Attorney (MR-69), if applicable;
3. the form Corporate Income Tax Return Data (COR-17.U), for a return prepared using software;
4. the Summary of Fields to Enter for Corporate Returns (COR-17.W), for a return prepared using software;
5. the CO-17.SP form;
6. the financial statements, including the notes, and the auditor’s report, if applicable. The mailing addresses appearing in the official document are not reproduced here, in accordance with publication instructions.

9. Do not send paper documents after an Internet filing

When the return is filed over the Internet, the following must not be mailed:

• the supporting documents related to that return;
• a paper copy of the return.

10. Keep records and supporting documents

A corporation that carries on a business or that must deduct, withhold or collect an amount under a tax law must keep records and retain supporting documents:

• at its place of business;
• or at another location designated and authorized by Revenu Québec. These documents must contain the information needed:
• to verify business income;
• to verify business expenses;
• to establish any amount payable under a tax law. Revenu Québec must be able to access these documents during an audit. In general, records and supporting documents must be kept for six years after the last year to which they relate. If records or documents are in electronic or computer form:
• they must be kept in an intelligible form on the same medium;
• they must be kept for the same period;
• the corporation must take the necessary measures to preserve their integrity during that period. If the corporation files its return late, it must keep the records and documents related to that year for six years after the date the return is filed. Retention may have to exceed six years if the corporation:
• files an objection;
• files an appeal;
• is party to an appeal under a tax law. The legal references mentioned are LAF 34, 35.1, 35.3 and 35.4.

Important warnings

• The official guide does not constitute a legal interpretation of Quebec or Canadian statutes and regulations.
• The corporation must ensure that the information applied corresponds to the tax laws in force.
• The CO-17.SP form must be used only for a non-profit corporation exempt from income tax, except in special situations where another form is required.
• A non-profit corporation not exempt from income tax must file form CO-17, not form CO-17.SP.
• An exempt corporation claiming a tax credit or subject to a tax other than income tax must file form CO-17 and, if applicable, form TP-997.1.
• A corporation that was a registered charity throughout the taxation year must file form TP-985.22.
• A corporation whose main purpose is to provide its members with recreation, sport or meal facilities may be considered a trustee for certain property and be required to file form TP-646.
• The return, financial statements and auditor’s report, if applicable, must be filed within six months after the end of the taxation year.
• A corporation’s taxation year corresponds to its fiscal period and cannot exceed 53 weeks.
• Annual registration fees must be paid no later than the last day of the second month following the end of the taxation year.
• Registration fees remain due every year even if no changes are made to the enterprise register, except in the year of first registration and the following year.
• Enterprise register information must be confirmed or updated within six months after the end of the taxation year.
• Since March 31, 2023, certain information on ultimate beneficiaries must be reported and kept up to date in the enterprise register.
• Income and amounts reported in the tax-exempt corporation part must generally be entered without deducting related expenses when the guide so indicates, notably for rents and sales or gross proceeds.
• Foreign amounts on line 503 must be converted into Canadian dollars using the exchange rate in effect on the date the amounts were received.
• Source tax withheld on foreign income entered on line 503 must not be deducted.
• Amounts already reported on a specific line must not be entered again when a subsequent line expressly excludes them, for example on lines 533, 562 and 589.
• If the return is filed over the Internet, paper documents related to that return must not be mailed.
• Records and supporting documents must generally be kept for six years, and longer in certain cases, notably in the event of an objection, appeal or

appeal.

• When a return is filed late, documents related to the year concerned must be kept for six years after the date the return is filed.
• If the documents are electronic or computer-based, they must remain intelligible and their integrity must be maintained throughout the retention period.
• The corporation’s confidential information may be used, compared, matched, paired or disclosed within the limits provided by law, notably for the application of tax laws and the administration of programs.

Summary

The CO-17.SP form is for non-profit corporations exempt from income tax that must file an income and information return in Quebec and, where applicable, pay their annual registration fees. It must not be used if the corporation is not exempt, if it is claiming a tax credit, if it is subject to a tax other than income tax or if it was a registered charity throughout the year. The return, accompanied by the financial statements and the auditor’s report if applicable, must be filed within six months after the end of the taxation year, which cannot exceed 53 weeks. Annual registration fees are due every year, except in the year of first registration and the following year, and must be paid no later than the last day of the second month following the end of the taxation year. The form requires detailed information on the corporation’s identity, income, assets, liabilities, remuneration, members, directors, activities and updates to the enterprise register. Certain special situations create additional obligations, including filing form TP-646 when a corporation mainly provides its members with recreation, sport or meal facilities. Records and supporting documents must generally be kept for six years, and longer in the event of late filing, objection, appeal or challenge. Confidential information provided to Revenu Québec is protected, but may be used or disclosed in cases permitted by applicable laws.