New Trust Reporting Requirements Effective For 2021 Tax Year

All trusts that continue to be in effect past December 31, 2020, will be subject to new reporting requirements and harsh non-compliance penalties for incomplete or inaccurate information. It's important that trust administrators understand their new reporting obligations to avoid disputes, penalties, and redundancies. In addition, trust administrators affected by the new rules are wise to proactively review the trust and determine whether it still provides a useful purpose for their particular circumstances and, if not, consider winding it down before the new reporting rules take effect.  

Affected Trusts. With some exceptions, the new reporting requirements will require all Canadian resident trusts created by Deed or Will to file a T3 return even if the trust has no income to report.