Updates on the proposed expanded trust reporting rules
As we noted in previous posts, the CRA has been asking trustees to provide their details, as well as details on other trustees, the settlor, the protector (if any) and beneficiaries, starting with the 2021 T3 income tax return due March 31, 2022. As a trustee, obtaining the information the CRA is requesting for these persons—names, addresses and SINs—could be an awkward or lengthy process if you haven’t talked to your friend or relative who settled the trust, or if there are beneficiaries who don’t know they were listed as beneficiaries (whether named or not).
The good news?
While we’re still waiting on more details from Finance and the CRA, the CRA has deferred this additional reporting, so it won’t be required for the 2021 T3 returns.
The CRA has updated their webpage on the proposed trust reporting rules with the following message:
“The legislation to support this proposed measure is pending. The CRA will administer the new reporting and filing requirements once there is supporting legislation that receives Royal Assent. The CRA will continue to administer the existing rules for trusts, under enacted legislation. The proposed beneficial ownership reporting requirements will not be part of the published 2021 T3 income tax return. This note will be updated when more information is available. You should not delay filing your 2021 T3 tax return.”
Lastly, a reminder to pay any interest owing on loans made to the trust from non-arm’s length/related persons no later than January 30, 2022.
Article written by Lori Oliver, CPA, CA.