How new reporting rules for trusts may have implications
on your operations
In the 2018 Budget, the federal government first proposed
expanding the annual reporting requirements for trusts. These new
trust reporting rules were meant to come into effect for trusts
with taxation years ending on December 31, 2021, and after;
however, draft legislation was not released by the Department
of Finance until February 7, 2022.
Under this new draft legislation, these rules are expected to
come into effect for trusts with taxation years ending on or
after December 31, 2022.
What are the New Trust Reporting Rules?
Under the new rules, all non-resident trusts that currently have
to file a Canadian income tax return and most resident trusts must
now identify all trustees, beneficiaries, and settlors of the
trust, along with any person who can control the trust's
appointment of income or capital.
