Important Update – Bare Trusts Exempt from 2023 Trust Reporting Requirements

As we approach the April 2, 2024, trust filing deadline, we wanted to ensure you are promptly informed about a significant announcement from the Canada Revenue Agency (CRA) regarding bare trusts and their reporting requirements for the 2023 tax year.

On March 28th, 2024, CRA announced that bare trusts would be exempt from certain trust reporting requirements for the 2023 tax year. This decision comes as a response to the unintended impact of new reporting regulations on Canadians. Here’s what you need to know:

CRA Statement: In their announcement, the CRA highlighted their commitment to supporting the effectiveness and integrity of Canada’s tax system. Recognizing the challenges posed by the new reporting requirements for bare trusts, the CRA has decided not to mandate the filing of a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year, unless specifically requested by the CRA.

Moreover, the CRA has pledged to collaborate with the Department of Finance to provide further guidance on this filing requirement in the coming months. They have assured Canadians that they will communicate any updates as soon as they become available.

Please reach out to your trusted Stark & Marsh advisor with any questions you may have.

For more information visit the Government of Canada’s website.