On March 28, 2024, the Canada Revenue Agency ("CRA") released a statement exempting bare trusts from having to file a T3 Income Tax and Information Return (a "trust return"), including Schedule 15 for the 2023 tax year, unless the CRA makes a direct request. This was an unexpected statement released just before the filing deadline for 2023, which would otherwise have been April 2, 2024.
The CRA says that it will work with the Department of Finance over the coming months to further clarify its guidance on the bare trust filing requirement. As of this latest announcement, bare trusts would still be required to file a trust return and Schedule 15 for the 2024 tax year, and for future taxation years thereafter. More details can be found on the CRA's website.
We are closely following developments regarding the bare trust reporting requirement.
The CRA's announcement only applies to bare trust arrangements and to the filing requirement imposed under new subsection 150(1.3) of the Income Tax Act (Canada). The announcement does not impact the filing requirement for express or other trusts that would otherwise be required to make T3 filings (including new Schedule 15) and to remit any tax payable by April 2, 2024.
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