In a previous blog, "
The Movement to Transparency and the Erosion of Privacy"
we wrote about the global move to greater transparency by
government and taxing authorities which they claim is necessary to
combat money laundering and tax evasion.
As part of that agenda which the government asserts is necessary
to ensure the effectiveness and integrity of the Canadian tax
system, new income tax rules have been introduced which require
trusts (with limited exceptions) to provide additional information.
As well, certain trusts which may have had no reporting and
disclosure obligations because they had no income will now be
required to file a trust income tax and information return.
The first reporting and disclosure year will be 2021. 2020 will
be a busy time for trustees and their professional advisors as they
come to terms with the new rules. Trusts which have no income and
previously did not file a tax return, for example trusts used to
hold a cottage, residence or
