All trusts, unless certain conditions are met, will be required to file an annual T3 Return with the CRA.
Trusts that are required to file a T3 Return, other than listed trusts, generally need to complete Schedule 15 in their annual T3 return to report beneficial ownership information. This even includes discretionary beneficiaries.
CRA have a long list of previously existing and new penalties for late filed T3 returns including the following: (see link above for a complete listing) a) 5% of the unpaid tax when the return was required to be filed plus 1% of such unpaid tax for each full month that the T3 return is late, to a maximum of 12 months. b) If no tax is owing, an alternative penalty of a daily penalty of $25, with a minimum of $100 and a maximum of $2,500 c) For 2023 bare trusts get a one-time penalty waiver if no gross negligence involved. d) The Gross Negligence penalty is equal to the greater of $2,500 or 5% of the highest total fair market value of all property held by the trust in the year.
The above information is general in nature. Please ensure that you contact Canham Rogers CPA to discuss any specific transactions prior to implementation. We would be pleased to assist you in these and other area’s of your business.
