Federal Budget 2018 - Reporting Requirements For Trusts

Overview

• Federal budget released in February 27, 2018
• New reporting requirements apply to:
  • Express trusts resident in Canada
  • Non‐resident trusts that file T3 returns

Why is CRA doing this?

• "Some taxpayers have used trusts in complex arrangements to prevent the appropriate authorities from acquiring this required information."

‐ Budget 2018 Tax Measures

• "This change is being made to improve the collection of beneficial ownership information with respect ton trusts and to help the CRA assess the tax liability for trusts and its beneficiaries."

‐ CRA website

Reporting Requirements – Current

• Generally no need to file annual income tax (T3) return if trust does not earn income or make distributions in a year