Client 12 year old earned $20,000 acting last year. I know there is a agency fee, and union dues. How do I treat the money that went into the public trustee. Any insight to this would be appreciated.
I think that you would need to do the following:-
Review acting contract to determine who earns the income (individual, proprietorship, corporation, trust).
Contact your provincial public trustee to view the nature and terms of the public trustee’s oversight, fees, interest income. Normally, if this an oversight position, funds held or monitored by the trustee would be handled like any other cash of bank asset. It has no impact on income. Find out who has signing authority on the tax return on behalf of this child actor - parent, legal guardian, public trustee. For some insight, refer to the link below to view how Alberta handles this. The Office of the Public Trustee of Alberta is very approachable and helpful. You would need some letter of introduction or authority to obtain private and confidential information. The Public Trustee can help you with this. CRA Individual and Business Enquiries can also be very helpful. Ask for a specialty agent who is knowledgeable in who can be the authorized signatory in this case.
Union dues are reported based on the type of income - salaried, self-employed, corporation, or trust.
Salaried - line 212
Self-employed - T2125, 8760
PUBLIC TRUSTEE ACT
17 Definitions 18 Expenditure of funds for minor’s benefit 19 Transfer of property to Public Trustee’s equivalent in other jurisdiction 20 Monitoring trustee of trust for minors 21 Monitoring trustee for minors 22 Court directives to monitor trustee for minors 23 Notice to proceed under Limitations Act
Thanks Dominique for all the helpful info , I’ll start with CRA and look up Public Trustee for BC. Her dad is the legal representative. T4A as a business return.
Thanks again Dominique.
If the Trustee received the money and is holding it, they should have prepared a T3 return. In the Trust they could pay the tax owing or distribute the income to the beneficiary by issuing a T3 slip. If you don’t have a T3 then the trust must of paid the tax.
As this is the BC Public Trustee, I know that they issue T5 slips but without SIN. (I have a client which I reviewed the file a few years back.)
TheT5 slips can have an impact if you are addressing a single parent family. If not, the income is the child’s earnings.
The BC Public Trustee will not provide the slip without a request but is quite willing to do so on request.
I am happy that you found the links and information helpful. This is how I learned and continue to learn, by being active in communities, curious, and follow-up each question repeatedly until I understand the underlying principles, laws, statutes, regulations, procedures, forms, and competent authorities.