Additional obligation for owners of rental property

Published on February 16, 2016

In the March 2015 budget, Quebec’s Ministère des Finances announced a review of the solidarity tax credit (the “STC”) to ensure better management of the credit’s “housing” component. Previously, in claiming the STC, individuals were not required to prove that they were an owner, tenant or subtenant of an eligible dwelling. Therefore, many STC recipients claimed that they lived alone even though they shared a dwelling, resulting in additional costs to Quebec taxpayers. To address this problem, Quebec’s Ministère des Finances introduced the RL 31 slip for owners of one or more rental properties to clearly identify the place of residence of individuals claiming the STC.

RL-31 slips and affected dwellings

Owners (including businesses, individuals or corporations) of rental property located in Quebec for which rent was paid must now file RL-31 slips. The slips must include the required information about the tenants or subtenants of the dwelling on December 31 of a given year.

The tenants and subtenants to be entered on this new form are individuals who have signed a lease or sublease the owner consented to and who are therefore responsible for paying rent (excludes individuals who sign a lease as guarantors).

The RL-31 slip applies to houses, apartments and other dwellings located in Quebec and for which rent was paid or payable on December 31 of a given year. However, owners of a dwelling listed below are not required to file RL-31 slips:

A dwelling located in a facility maintained by a public or private institution under agreement (publicly funded) that operates a hospital centre, a residential and long-term care centre (CHSLD) or a rehabilitation centre governed by the Act respecting health services and social services;
A dwelling located in a building or a residential facility where the services of an intermediate resource or a family-type resource are offered;
A room situated in a principal residence, if fewer than three rooms are leased or offered for rent and if the room has neither a separate entrance from the outside nor sanitary facilities separate from those used; and
A room situated in a hotel establishment or in a rooming house that is leased or subleased for a period of less than 60 consecutive days.

Required information

The RL-31 slip must include the total number of tenants or subtenants, the address of each dwelling, the last name, first name and address of each tenant or subtenant, and the last name, first name and address of the owner(s). Any individual who fails to submit the required information, without having made a reasonable effort, is subject to a $100 penalty.

Filing deadline

RL-31 slips must be filed no later than the last day of February in the year following the year covered by the RL slips. Therefore, RL-31 slips for the 2015 taxation year must be submitted by February 29, 2016.

Filing RL-31 slips

Owners filing more than 50 RL-31 slips must submit the information requested by Revenu Québec electronically using software authorized by Revenu Québec or the “Prepare the RL-31 Slip” online service. Owners filing 50 or fewer RL-31 slips can submit them electronically using the above-mentioned methods or send paper slips to the following address:
3800, rue de Marly, Québec (Québec) G1X 4A5.

Owners who fail to meet this obligation within the prescribed deadline are liable to a daily $25 late-filing penalty (up to a maximum of $2,500).

Owners must also provide a copy of the RL-31 slip (copy 2) to each tenant and subtenant whose name and address appear on the slip. Thus, tenants or subtenants can use the serial number indicated on this form to claim the STC on their personal income tax return.

Hans Laliberté, CPA, CGA, LL.M. Fisc.
Directeur, Fiscalité canadienne
Demers Beaulne