Canadian Tax Alert: 2024 Bare trust filing exemption

Trusts Reporting Requirements for the 2024 Tax Year: Bare trust filing exemption! If you manage a trust fund particularly, a “Bare trust” in Canada, this important 2024 tax compliance update is for you. ??

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The Canada Revenue Agency (CRA) recently announced an exemption for bare trusts, stating that they will not be required to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), unless specifically requested by the CRA.

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This exemption is a continuation of the trust reporting requirements exemption that was issued for bare trusts for the 2023 tax year. Therefore, if you have a bare trust, you will not need to file for both 2023 and 2024, unless specifically requested by the CRA.

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However, it's important to note that this exemption does not apply to other affected trusts. These trusts are still required to report and file a T3 return, including Schedule 15, if their taxation years end after December 30, 2023. Unless specific conditions are met, these affected trusts must comply with the trust reporting requirements.

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To ensure compliance, the deadline for filing the T3 return is no later than 90 days after the trust's tax year-end. For most trusts, the tax year-end aligns with the end of the calendar year. Therefore, if your trust has a December 31, 2024, tax year-end, you will need to file your T3 Return by March 31, 2025.

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For more details and updates, visit CRA’s guidance on trust income tax return and trust reporting requirements here .

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I hope this update clarifies the trust reporting requirements for the 2024 tax year. Stay informed and ensure you meet the necessary trust reporting requirements to avoid any potential penalties or issues!

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?? Stay compliant and have a successful tax season!

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