New reporting and disclosure rules will come into effect in 2021
for certain trusts. For trusts in existence as of January
1st 2021, trustees must report specific information
including names, addresses, birthdates and tax identification
numbers for the creator of the trust (settlor), all trustees, all
beneficiaries (including those with only a contingent interest),
and anyone who has the ability to influence the decisions of the
trustees. These details must be reported on a schedule to the T3
return.
Prior to 2021, only trusts that were active during the year
(such as by having tax payable or having made distributions during
the year) were required to file a T3 tax return. A trust that had
no tax payable or that had not distributed income or capital during
the year was generally not required to file a T3 return. The new
reporting and disclosure requirements apply to express trusts
resident in Canada even if they were inactive or had no income
during the year.
