The CRA has announced that registered charities that are trustees of certain internal trusts, such as endowment funds and donor-advised funds (DAFs), will not have an additional annual requirement to file a T3, “Trust Income Tax and Information Return”, for those arrangements on an annual basis. The CRA announced this new limited relief on November 10, 2023.

Although this development will be welcome by registered charities, it’s important to note that the CRA’s announcement does not extend to all internal trusts. In addition, non-profit organizations (NPOs) will not benefit from this relief. As a result, registered charities and NPOs may still have to file a T3 return for certain internal trust arrangements in accordance with the new trust reporting requirements.

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