Trust Reporting Requirements For 2021 In Canada

For those that are looking to the Income Tax Act for relief and comfort on the horizon after a difficult 2020, we suggest looking elsewhere.

One of the many changes likely to come in 2021 is the compliance requirements for trusts. Trustees and administrators of trusts are generally only used to filing a T3 Trust Income Tax and Information Return (a "T3") when it has tax payable or makes its final distribution.

In 2021, and thereafter, non-resident trusts and certain express Canadian-resident trusts will be required to file T3 whereas they currently do not. Additionally, for taxation years ending on or after December 31, 2021, all Canadian-resident trusts (exceptions noted below) and certain non-resident trusts will be required to report the following information on the settlors, trustees, beneficiaries, and protectors, or other individuals who may override trustee decisions or otherwise control the trust: