Update on proposed trust reporting rules
Further to our update on December 20 (see “Update on trust reporting proposals”), there have been some developments on this issue. Although the final version of the 2021 T3 Trust Income Tax and Information Return (“T3 Return”) had not been posted on the CRA website at the time of writing, a PDF version of the form was distributed by tax publishers earlier this week. That version appears to contain no reference to the new trust reporting rules.
However, we also understand that a draft version of an earlier version of the 2021 T3 return was included in some software packages and this form did have references to the proposed rules. Similarly, some software packages contained a draft Schedule 15 which would be used to report the information required under the draft legislation. This would seem to indicate that the proposed rules were addressed in earlier versions of the CRA’s trust forms but has since been removed.
Given the ongoing confusion, we have again asked both the CRA and the Department of Finance to provide an update on the status of the proposed rules as soon as possible.