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The 2018 Federal budget<\/a> released draft legislation relating to new trust reporting requirements applicable for trust year-ends ending on or after December 31, 2021. The draft legislation received Royal Assent to be applicable for trust year-ends ending on or after December 31, 2023. The new legislation changes the tax return filling requirements for trusts and additional trust information disclosure requirements were introduced. The new trust information disclosure requirements will be formulate part of your annual T3 Trust Tax Return on Schedule 15<\/a>.<\/p>\n Prior to the introduction of the new legislation, trusts must file a trust tax return for a tax year if the trust has to pay tax, disposed of a capital property (e.g. shares of a corporation, real estate, etc.) and\/or allocated some or all of its income or capital to beneficiaries of the trust. Under the newly enacted legislation with respect to the trust reporting rules, that is no longer the case. All trusts resident in Canada will be required to file a T3 trust tax return unless they meet one of the exemptions. An example of types of trusts that may be exempt from filing include:<\/p>\n Further, trusts that are required to file a trust tax return for a tax year will also be subject to additional trust information disclosure requirements. The additional information disclosure to be provided by the trust in its tax return includes:<\/p>\n The penalties associated with not complying to the new trust reporting requirements and additional information disclosures are as follows:<\/p>\n Understanding all information to be disclosed by the trust may not be available, a reasonable effort in gathering all the required information must be made to alleviate potential assessment of penalties. We encourage you to review your individual situation to determine whether the new trust reporting requirements impact you and to speak to your trusted advisor regarding next steps.<\/p>\n Please feel free to contact an RLB trusted advisor<\/a> to discuss reviewing your individual situation and how the new trust reporting legislation may impact you.<\/p>\n \u00a0<\/p>\n<\/p><\/div>\n\n
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