New Trust Reporting And Disclosure Rules - Expect The Unexpected For 2022

In our previous blog, "New Trust Reporting and Disclosure Rules," we wrote about the new Canadian trust reporting and disclosure rules which were originally to come into effect in 2021. Updated draft legislation was released by the Department of Finance on August 9, 2022, and the legislation is now expected to come into effect for the 2022 tax year, significantly expanding the number of trusts which will now be required to file an annual T3 trust tax return. Here's an overview of what you need to know if you are a trustee of an existing trust.

First, you'll need to determine if your trust is caught by the new rules. Exemptions are narrow, but include:

• Trusts in existence for less than three months;