LATE BREAKING: MARCH 28, 2024 UPDATE:

Today, the CRA announced that it will not require bare trusts to file a T3 Income Tax and Information Return for 2023. From the CRA website:  

“To support ongoing efforts to ensure the effectiveness and integrity of Canada’s tax system, the Government of Canada introduced new reporting requirements for trusts.

In recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year, unless the CRA makes a direct request for these filings.

Over the coming months, the CRA will work with the Department of Finance to further clarify its guidance on this filing requirement. The CRA will communicate with Canadians as further information becomes available.”

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Original post (FEBRUARY 12, 2024)

Many families may utilize what are called ‘bare trusts’ to support the financial arrangements of a family member.  Examples of bare trusts would be situations like joint bank accounts or real estate held in trust for a family member with a disability. New 2023 tax legislation requires people to file T3 trust returns on ‘bare trusts’ prior to April 2^nd, 2024. While there may or may not be tax implications for the holder of a bare trust, there are significant penalties for not reporting this type of arrangement on time. Inclusion Alberta cannot advise on the filing requirements so if you have any questions or think this may affect you in any way, please consult an accountant well before the deadline date. Reporting must be filed by April 2nd, 2024 to avoid possible penalties.

For more information, visit the Canada Revenue Agency’s website here.