Trust Reporting

There are new reporting requirements for many trust arrangements for tax years ending after December 30, 2023.  The changes outlined below may result in a situation where a trust is required to file for the first time.  The main changes under the new trust reporting requirements are:

  • All trusts, unless certain conditions are met, will be required to file an annual T3 Return with the CRA.
  • Trusts that are required to file a T3 Return (other than listed trusts) generally need to complete Schedule 15 (see information required below) in their annual T3 return to report beneficial ownership information.
  • Bare trusts include an arrangement where legal title and beneficial ownership are different.  Bare trusts can include situations such as:
      • a parent a parent is on title of a child’s home for financing purposes
      • a child is on title of a parent’s home for estate planning purposes
      • a parent or grandparent holds investments or bank accounts in trust for a child
      • a child’s name is on their parent’s investment account for ease of administration


Failure to make the required filings and disclosures on time attracts penalties of $25/day, to a maximum of $2,500, as well as further penalties on any unpaid taxes. New gross negligence penalties may also apply, being the greater of $2,500 and 5% of the highest total fair market value of the trust’s property at any time in the year.



Certain types of trusts are excluded from these additional reporting requirements, including trusts that:

  • Have been in existence for less than three months at the end of the calendar year
  • Hold only money and certain other designated financial assets that have a total fair market value that does not exceed CA$50,000 throughout the year
  • Have all of their units listed on a designated stock exchange
  • Are mutual fund trusts
  • Are designated as GREs

Please contact us for assistance in determining your reporting requirements.