Blog | 01 Apr 2024

Client Advisory: Update on Trust Reporting Requirements

By SBLR Team | Announcements, Tax

We wish to share important updates from the Canada Revenue Agency (CRA) regarding the reporting requirements for bare trusts.

Recent Developments:

The Government of Canada introduced new reporting requirements to enhance the effectiveness and integrity of the tax system. However, after recognizing the unintended impact of the new reporting requirements on Canadians, the CRA announced a significant change for the 2023 tax year on March 28, 2024.

Bare Trust Exemption:

For the 2023 tax year, bare trusts are not required to file a T3 Income Tax and Information Return, including Schedule 15 (Beneficial Ownership Information of a Trust), unless specifically requested by the CRA.

This exemption applies to bare trusts in various contexts, such as:

  • In-trust accounts for minors or others, often set up by parents or grandparents.
  • Assets held in trust for someone else, such as real estate, to facilitate mortgage approval or for probate purposes.
  • Lawyers and real estate brokerages with specific trust accounts for clients.
  • Corporations acting as bare trustees on title for real estate.
  • Any arrangement where the title/ownership differs from the beneficiary.

Important Dates and Requirements:

The update on bare trust filings does not affect the requirement to file the T3 Return and Schedule 15 for all other trusts with a taxation year ending on December 31, 2023 or later that fall under the new rules.

We will continue to update you as more information becomes available.

Should you have any questions or require further clarification, please do not hesitate to contact us.

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