Finance recently released draft legislation that includes welcome changes to remove the requirement for bare trusts to file a “T3 Trust Income Tax and Information Return” and Schedule 15, “Beneficial Ownership Information of a Trust” for the 2024 taxation year, and expand several other exceptions to provide relief to certain other trusts. These changes, which were included in draft legislation released by Finance on August 12, 2024, also include new rules that would deem certain additional arrangements to be an express trust subject to the reporting requirements, beginning with the 2025 taxation year.
Taxpayers should review the latest changes to the trust reporting rules and assess how their reporting obligations under these rules may be affected for the 2024 and subsequent taxation years. Finance is accepting comments on the draft legislation until September 11, 2024.
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