Trust Reporting Update for 2022 and Other Trust Issues
*Please note the Department of Finance released an important change on November 3rd 2022 stating that the new trust reporting rules will now apply for taxation years starting December 31, 2023 rather than December 31, 2022. This course was filmed on November 2, 2022.
The Department of Finance
recently provided clarification on the new 2022 reporting requirements for
Trusts which would normally be due by March 31, 2023. The reporting applies to
express Trusts resident in Canada, all non-resident trusts that currently must
file a T3 return and Bare trusts.
Most noteworthy is the change in reporting for Bare trusts. This is a new requirement for a commonly used structure that previously was not disclosed to the CRA. To ensure compliance with the beneficial ownership requirements, CRA can assess substantial penalties up to 5% of the maximum value of property if they believe a taxpayer knowingly withheld this information.
Course Topics will Include -
1) New Trust Reporting Requirements for 2022
2) When to Use / Not Use a Trust
3) Being Prepared for a CRA Trust Audit