Trust Rule Changes at the CRA and You

Trust Rule Changes at the CRA and You

Federal budget documents in 2018 and 2019 had proposed new reporting requirements to take effect on December 31, 2021 for certain trusts. Implementation has now been delayed until next year or later. In that regard the Canada Revenue Agency (CRA) has said: “The legislation to support this proposed measure is pending. The CRA will administer the new reporting and filing requirements once there is supporting legislation that receives Royal Assent.  The CRA will continue to administer the existing rules for trusts, under enacted legislation. The proposed beneficial ownership reporting requirements are not part of the published 2021 T3 income tax return.”

Further information is available from the CRA website which includes: “Budget 2018 proposes that the following types of trusts (that are either resident in Canada, or non-resident but required to file a T3 return) are not required to provide additional information:

  • mutual fund trusts, segregated funds and master trusts;
  • trusts governed by registered plans (i.e., deferred profit sharing plans, pooled registered pension plans, registered disability savings plans, registered education savings plans, registered pension plans, registered retirement income funds, registered retirement savings plans, registered supplementary unemployment benefit plans and tax free savings accounts);
  • lawyers’ general trust accounts;
  • graduated rate estates and qualified disability trusts;
  • trusts that qualify as non-profit organizations or registered charities;
  • trusts that have been in existence for less than three months; and
  • trusts that hold less than $50,000 in assets throughout the taxation year (provided that their holdings are confined to deposits, government debt obligations and listed securities).”

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Thanks for reading!

James Jacuta

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