The Canada Revenue Agency (CRA) will not require bare trusts to file a 2023 T3 return (including Schedule 15) unless it makes a direct request for the filing.
In a last minute statement on 28 March the agency said: “To support ongoing efforts to ensure the effectiveness and integrity of Canada’s tax system, the Government of Canada introduced new reporting requirements for trusts.
“In recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year, unless the CRA makes a direct request for these filings.
“Over the coming months, the CRA will work with the Department of Finance to further clarify its guidance on this filing requirement. The CRA will communicate with Canadians as further information becomes available.”
In reaction, Ryan Morris and Michael Ding of Toronto headquartered WeirFoulds law firm said in a briefing note that
“the timing of this announcement – the last business day before the filing deadline – is very unfortunate and it is extremely unfair to accountants (who are already overworked at this time of year) and their clients who sought to comply with the rules.
“The CRA seems to be making a bad habit of these last minute announcements (recall the multiple last minute extensions to file the 2022 Underused Housing Tax return).”
To read the statement from the agency, click here.
