We want to keep you informed of an important update from the Canada Revenue Agency (CRA) this week regarding trust reporting requirements for the 2024 tax year.
Key Update for Bare Trusts
The CRA has announced that bare trusts will continue to be exempt from filing a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), unless specifically requested by the CRA. This exemption extends the relief originally provided for the 2023 tax year.
Reporting Requirements for Other Trusts
The new reporting requirements still apply to other affected trusts with taxation years ending after December 30, 2023. These trusts must file a T3 return, including a Schedule 15 unless they meet specific exemption criteria.
Key Filing Deadline
Trusts with a tax year ending on December 31, 2024, must submit their T3 return by March 31, 2025, as the CRA’s filing deadline is no later than 90 days after the tax year-end.
For additional details and answers to frequently asked questions on trust reporting, please visit the CRA’s Trust IncomeTax Return page.
If you have questions about how this update may impact you, feel free to reach out to our team.
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.