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ARTICLE · 17 DECEMBER 2024

Understanding Bare Trust Reporting Rules: Key Updates For The 2025 Taxation Year

Miller Thomson
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On August 12, 2024, draft legislative proposals were introduced by the Department of Finance that, among other things, are designed to clarify the bare trust reporting rules...

CanadaTax
Pierce Quaghebeur
Pierce Quaghebeur
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On August 12, 2024, draft legislative proposals were introduced by the Department of Finance that, among other things, are designed to clarify the bare trust reporting rules which came into force for the 2023 taxation year for most trusts. It is hoped that these changes, once enacted, will significantly reduce the number of Canadians with bare trusts who need to file and will ease the related administrative burden.

The new legislative proposals will repeal the existing bare trust legislation and replace it with updated legislation applicable to the 2025 and subsequent taxation years.

For 2024, the existing bare trust legislation remains in effect. However, on October 29 2024, the Canada Revenue Agency (the "CRA") announced that bare trusts will not be required to file a return (including Schedule 15, Beneficial Ownership of a Trust) unless directly requested by the CRA. This is a continuation of the administrative exemption announced by the CRA for the 2023

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