Canada: Information reporting requirements for trusts
Trusts must meet significant new annual information reporting requirements
Trusts must meet significant new annual information reporting requirements
Trusts (including bare trusts) must meet significant new annual information reporting requirements beginning in tax years ending after 30 December 2023. Read TaxNewsFlash
Under these requirements, which will require more trusts to file a “T3 Trust Income Tax and Information Return” by 2 April 2024, affected trusts will now have to report specific information on each trustee, beneficiary, settlor and controlling person (e.g., a protector) of the trust in their 2023 T3 return, subject to limited exceptions. Trusts that do not meet these new requirements may be subject to significant penalties.
Note that affected trusts that were wound-up in 2023 will still have to gather and report required trust information in a T3 return for its final year (as the end of its tax year will still be 31 December 2023).
Read a December 2023 report [PDF 194 KB] prepared by the KPMG member firm in Canada
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