T3 SIFT (specified investment flow-through)

Updated: 2023-05-10

TaxCycle T3 includes a SIFT (specified investment flow-through) worksheet specifically designed for inter-vivos SIFT trusts. Calculations on the T3SIFTWS adjust the net income and the provincial taxable income calculations throughout the T3 return.

You may not electronically file this worksheet. Please print and mail it if required.

Code 338 Inter-vivos SIFT Trust

To indicate the trust type is an inter-vivos SIFT trust, enter code 338 on the Info worksheet.

Screen Capture: Type of Trust

Chart 6, Refundable Québec Abatement

Charts 1 to 5 apply to all SIFT trusts. Chart 6 calculates the refundable Québec abatement and only applies to trusts resident in Québec.

Non-calendar Trust Years and Multiple Jurisdictions

The worksheet calculates using tax rates applicable to the current tax year only.

If the trust year spans more than one year, is not based on a calendar year, or operates in multiple jurisdictions, you must:

  1. Manually calculate Chart 7, net corporate income tax rate, and Chart 8, provincial or territorial SIFT tax rate, for the applicable years.
  2. If applicable, override the corporate income tax rate in chart 7 at line 15 or in chart 8, at line 3 if part A applies or line 7 multiple jurisdiction situations.

A review message will display if the return falls into one of these situations to remind you to calculate the amounts manually.

Screen Capture: T3SIFTWS Charts 7 and 8