Key Contact:

Marni M. K. Whitaker

Key Contact:

Marni M. K. Whitaker

Postponement of Changes in Tax Filing Requirements for Trusts

By: Marni Whitaker

In our previous article titled Changes in Tax Filing Requirements for Trusts, we reported that the Income Tax Act was being amended to impose additional filing requirements for certain trusts for the 2021 and subsequent taxation years.

The Canada Revenue Agency has now announced that the new requirements will not come into force until there is “supporting legislation that receives Royal Assent”.

The following is an extract from the CRA’s website on Reporting Requirements for Trusts:

“The legislation to support this proposed measure is pending. The CRA will administer the new reporting and filing requirements once there is supporting legislation that receives Royal Assent.  The CRA will continue to administer the existing rules for trusts, under enacted legislation. The proposed beneficial ownership reporting requirements will not be part of the published 2021 T3 income tax return.  This note will be updated when more information is available. You should not delay filing your 2021 T3 tax return.”

As a result, trusts that had not previously been required to file income tax returns can continue not to file returns for at least the 2021 taxation year.

If you have questions about how this may impact you, please reach out to a member of our Wills, Trusts & Estates group for more information.

This article is not intended to serve as a comprehensive treatment of the topic and is not legal advice. All legal matters are dealt with pursuant to their specific facts and circumstance. Nothing replaces retaining a qualified, competent lawyer.