— February 6, 2024 —
If you’re worried about the New T3 Trust Reporting rule, here’s a list of resources to consult for those details not covered in many internet-based articles. We’ve ranked these resources in order of practicality and usefulness to save time and provide valuable insights.
1. CRA T3 Trust Guide
Link: https://www.canada.ca/en/revenue-agency/services/f…
– Description: This guide is an essential resource directly from the Canada Revenue Agency (CRA) that provides comprehensive details on T3 Reporting Rules. It covers scenarios under which a trust must file a return, including holding property subject to attribution rules (s. 75(2)), providing benefits to a beneficiary, receiving income allocated to beneficiaries, and more. It’s a primary source for understanding the obligations and exemptions related to T3 filings.
– Usefulness: Most practical and directly applicable, providing authoritative guidance and examples.
2. Income Tax Regulation 204 & 204.2
Link: https://laws.justice.gc.ca/eng/regulations/C.R.C.,…
– Description: Outlines the requirement for persons in fiduciary capacities to file information returns, including the specifics of when a return must be filed (within 90 days from the end of the taxation year) and exemptions. Regulation 204.2 discusses additional reporting requirements for trusts, further clarifying obligations under new legislation.
– Usefulness: Highly useful for understanding the legal framework and specifics of filing requirements, making it essential for ensuring compliance.
3. Income Tax Act, Sections 150(1)(c) and 150(1.1)
Link: https://laws-lois.justice.gc.ca/eng/acts/I-3.3/sec…
– Description: Specifies the conditions under which a trust must file an income tax return, including if Part I tax is payable, if the trust is requested to file by CRA, or if it has a taxable capital gain or disposes of capital property. It also outlines the filing deadline and exceptions.
– Usefulness: Explains legislative requirements on tax filings by trusts, providing a legal basis for compliance.
4. Draft Legislation on Additional Filing Requirements for Taxation Years Ending After December 30, 2023
Link: https://www.canada.ca/en/revenue-agency/services/t…
– Description: This resource covers the expanded filing requirements introduced in the 2018 federal Budget, aimed at closing information gaps. It includes draft legislation that applies to taxation years ending after December 30, 2021, highlighting the government’s efforts to enhance transparency and compliance among trusts.
– Usefulness: Offers insights into future compliance requirements, making it essential for forward-planning and advising clients on upcoming changes.
Each resource comes with a helpful description to guide its application in practice, ensuring CPAs have the knowledge needed to navigate the complexities of T3 Reporting Rules effectively.
AJAG offers several courses which include content on trust reporting and filing obligations – check out some preview videos here. And don’t miss out on our latest addition – Trust Reporting and Related Issues 2024.
