A communal organization is where members:
- Live and work together
- Operate a business in order to support themselves
- Don’t own property of their own due to religious beliefs, and
- Devote their working lives to activities of the group
The property of the communal organization and all its business agencies is considered to belong to a trust, of which members are considered beneficiaries.
The trust decides how much of its taxable income is given to its members in the congregation. As a member, your income from the trust is reported on a T3 slip and you’ll have to file a personal tax return by April 30, if:
- The trust allocated taxable capital gains to you
- You’re required to make contributions to the Canada Pension Plan (CPP), or
- You have tax payable for the year
Where can I learn more?
- IC78-5R3: Communal Organizations (CRA website)