The 2018 Canadian Federal Budget introduced proposals that will require certain trusts to disclose significant information about the trust. Later in 2018, draft legislation was introduced to implement such proposals to become applicable for the 2021 taxation year. However, the proposals ended up getting delayed until the 2022 taxation year and the draft legislation was never implemented into law. A revised set of proposals was released on February 4, 2022, with a bombshell that "bare trusts" would now be subject to the new reporting regime. Despite numerous concerns relayed to the Department of Finance about this new requirement, the August 9, 2022, package of amendments released by the Department did not contain any significant changes. Accordingly, practitioners and affected taxpayers will need to be aware of these expanded reporting requirements and get ready now! Happy listening!
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