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ARTICLE · 07 NOVEMBER 2024

A Closer Look At The Proposed Changes To The Trust Reporting Rules

McCarthy Tétrault
McCarthy Tétrault
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On August 12, 2024, the Department of Finance ("Finance") introduced draft legislation containing proposed amendments to the trust reporting rules in the Income Tax Act (the "Act").

CanadaTax
Tax Perspectives
Tax Perspectives
Cecile Ko Brock
Cecile Ko Brock
Erich Schultze
Erich Schultze
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On August 12, 2024, the Department of Finance ("Finance") introduced draft legislation containing proposed amendments to the trust reporting rules in the Income Tax Act (the "Act"). If enacted, these amendments would exempt more trusts from the trust information filing requirements that came into force last year.

These draft amendments intend to address two issues that trustees and their advisors have been eager to clarify:

  • which taxpayers are required to file T3 Trust Income Tax and Information Returns per paragraph 150(1)(c) of the Act; and
  • which taxpayers are required to provide additional "beneficial ownership information" in T3 Schedule 15, as per Regulation 204.2(1) of the Act.

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