CRA releases guidance on new trust reporting rules
The CRA has released an FAQ page regarding the new reporting rules in respect of trusts for taxation years ending on or after December 31, 2023. As stated by the CRA, “many trusts that did not previously have to file are now required to file an annual T3 Return.” This includes a “bare trust”, which, per subsection 150(1.3) of the Income Tax Act, includes “an arrangement under which the trustee can reasonably be considered to act as agent for all the beneficiaries under the trust with respect to all dealings with all of the trust’s property.” For trusts (including bare trusts) with a December 31, 2023 taxation year-end, the deadline provided by the CRA to file a T3 tax return is April 2, 2024.
The CRA has also released its T3 Trust Guide for 2023, which contains additional instructions in regards to filing T3 returns for trusts having regard to the new rules.