In our previous article titled Changes in Tax Filing Requirements for Trusts, we reported that the Income Tax Act was being amended to impose additional filing requirements for certain trusts for the 2021 and subsequent taxation years.
The Canada Revenue Agency has now announced that the new requirements will not come into force until there is "supporting legislation that receives Royal Assent".
The following is an extract from the CRA's website on Reporting Requirements for Trusts:
"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."
As a result, trusts that had not previously been required to file income tax returns can continue not to file returns for at least the 2021 taxation year.
About Mackrell International - Canada - Scott Venturo LLP is a full service business law firm in Calgary, AB and a member of Mackrell International. Mackrell International - Canada is comprised of four independent law firms in Alberta, British Columbia, Ontario and Quebec. Each firm is regionally based and well-connected in our communities, an advantage shared with our clients. With close relations amongst our Canadian member firms, we are committed to working with clients who have legal needs in multiple jurisdictions within Canada.
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