Bare Trusts are Exempt From Trust Reporting Requirements for 2023

March 28, 2024

Ottawa, Ontario

Canada Revenue Agency

To support ongoing efforts to ensure the effectiveness and integrity of Canada’s tax system, the Government of Canada introduced new reporting requirements for trusts.

In recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year, unless the CRA makes a direct request for these filings.

Over the coming months, the CRA will work with the Department of Finance to further clarify its guidance on this filing requirement. The CRA will communicate with Canadians as further information becomes available.

Is your trust a bare trust?

Whether or not an arrangement is a trust or a bare trust is dependent on the specific facts of each situation, as well as the applicable law. Taxpayers may wish to seek legal counsel if they are unsure whether their arrangement is a trust, and what type of trust they have.

More information on bare trusts can be found in our frequently asked questions on the new reporting requirements for trusts.

What are the new trust reporting requirements?

The new trust reporting requirements are applicable to trusts with taxation years ending after December 30, 2023. Affected trusts are required to file a T3 return, including Schedule 15, some for the first time.

The T3 Return and Schedule 15 filing deadline for most trusts is March 30, 2024. Since March 30, 2024 falls on a Saturday, a T3 return will be considered filed on time if the CRA receives it, or it is postmarked, on or before April 2, 2024 (the next business day).

Bare trusts are exempt from this filing requirement for the 2023 tax year, unless directly requested by the CRA.

Background Shape Background Shape Background Shape Background Shape Background Shape

Partner with Miller Bernstein