02/16/2024
I have not been very active on this page since I retired from the Financial Services side of my business. Now I only provide uninsured medical benefits for small companies. BUT... the following is worth noting
YOU MAY NEED TO FILE A T3 (Trust Return)
There are new reporting rules for trusts in effect and they may affect you:
Have you set up a joint or “in‑trust” bank or investment account with a child, grandchild or parent?
Are you on the title of your child’s real estate property to facilitate them obtaining a mortgage?
Are you on the title of your parent’s real estate property for probate and/or estate planning purposes (or is your child on title for your property)?
Are you a lawyer who holds specifically identified client funds in trust?
Do you or your corporation hold title on land parcels or other real estate property to avoid title merger?
Do you hold title on real estate or any other property on behalf of your corporation?
If any of these apply to you, a T3 trust return may be required for 2023 and penalties could apply if it is not filed.
Please contact your financial person as soon as possible if you think this may apply to you.
The due date for filing a 2023 trust return is April 2, 2024 although the Canada Revenue Agency has indicated it may have some leniency in the initial year.
The current penalty is $25 per day, with a minimum penalty of $100 and a maximum of $2,500. An additional penalty will now be applied if a failure to file the T3 return was made knowingly or due to gross negligence, equal to five per cent of the maximum fair market value of property held during the year by the trust, with a minimum penalty of $2,500.
