CRA proactively announces no bare trust reporting required for 2024

Yesterday, the CRA announced it will not require bare trusts to file a T3 Income Tax and Information Return (including Schedule 15 Beneficial Ownership Information of a Trust) for their 2024 taxation year, unless the CRA directly requests such filing first. The CRA made a similar announcement in March of this year exempting bare trusts from the new trust reporting requirements for the 2023 year.

Trust reporting requirements still apply to other affected trusts with taxation years ending on or after December 31, 2023. These affected trusts will be required to report beneficial ownership information (i.e., personal information of all trustees, settlors, beneficiaries and controlling persons for the trust) on Schedule 15 when filing their annual T3 Return. Notably, however, the Department of Finance Canada released draft legislation on August 12, 2024, which – if enacted into law – would exempt certain additional types of trusts (including all bare trusts) from the new trust reporting requirements for taxation years ending on or after December 31, 2024. Bare trusts would, under that legislation, have filing obligations for taxation years ending on or after December 31, 2025 (subject to certain proposed exemptions).

The T3 Return filing deadline is March 31, 2025 for trusts with a December 31, 2024 tax year-end.

Prepared by: Cadie Yiu

Cadie Yiu is an associate practicing in the firm’s Toronto office. Cadie advises on all aspects of domestic and international tax planning, corporate reorganizations, mergers and acquisitions, and trust and estate planning for individuals and families. She also advises clients… more »

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