As they dissect the implications of the new CRA reporting requirements, Mike and Connor highlight the importance of understanding one’s role in trust arrangements and the necessity of meticulous documentation. From identifying key players like settlors, beneficiaries, and trustees to grappling with penalties for non-compliance, the conversation underscores the critical role of proactive financial planning and accounting expertise.
Listeners are encouraged to seek guidance from their financial advisor and accountant to navigate the evolving landscape of trust reporting, ensure compliance, and safeguard their financial interests. Listen to gain invaluable insights into trust structures and tax obligations in this informative and timely discussion.
Trusts Matter: Navigating Changes in Tax Reporting
Recorded on March 15, 2024
March 28 Update
CRA presses pause on new ‘bare trust’ reporting requirements days before filing deadline.
“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.”
Connor Gates, CPA, CA, CFP®
Connor Gates, CPA, CA, CFP®, is a seasoned accountant and partner at a TriCert partner Chartered Professional Accounting (CPA) firm.
