Trust Reporting Rules – Draft Legislation Released

As part of draft legislation  released on July 27, 2018, the Department of Finance moved forward with new trust reporting rules that were announced in the 2018 Federal budget. The draft legislation did not contain many surprises. Having said that, the new trust reporting rules will be a big change for many trustees, beneficiaries and protectors of trusts who will now be required to adhere to additional reporting requirements. Accordingly, here are some quick observations that advisors, trustees, beneficiaries and protectors of Canadian trusts should be aware of:

1. The new reporting requirements will be applicable for taxation years that end after December 30, 2021. In other words, trusts that have calendar taxation year-ends (all trusts have calendar year-ends, other than graduated rate estates) will need to comply with these new requirements for the 2021 taxation year and forward;