Please see the first part of the article in our previous post. A few basics to help people who think they may be part of a bare trust: It’s the trustee who must file the T3. This is the person who administers a joint bank or investment account – someone managing an account for a …
The inept launch of new tax-filing rules by the Canada Revenue Agency started with good intentions. The CRA wants to reduce tax evasion and money laundering. As part of this effort, it’s asking taxpayers this year, for the first time, to provide information on a variety of assets where one person is a beneficiary and …
Did you open a First Home Savings Account (FHSA) in 2023? If so, you need to be aware of this important information. (Please see the first five tips in our previous post). 6. Unused FHSA contributions (contributions that are not deducted in the year they are made) can generally be carried forward for future tax years. 7. …
Ten tips if you opened a First Home Savings Account (part 2) Read More »
March 6, 2024 Ottawa, Ontario Canada Revenue Agency Did you open a First Home Savings Account (FHSA) in 2023? If so, you need to be aware of this important information. File your income tax and benefit return and fill out Schedule 15, FHSA Contributions, Transfers and Activities, to let us know that you opened an account, even if …
Ten tips if you opened a First Home Savings Account (part 1) Read More »
Please see parts 1-5 in our previous posts. Traditional trusts Under the previous rules, a trust was required to file a trust return if one of several conditions were met, such as the trust having taxes payable or disposing of capital property. Many trusts did not meet a condition and, therefore, were not required to …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 6) Read More »
Please see parts 1-4 in our previous posts. STEP 3: What information must be disclosed? Where a trust is required to file a tax return, the identity of all the trustees (who is on title or holds the asset), beneficiaries (who really owns the asset), settlors (who owned the asset originally) and anyone with the …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 5) Read More »
Please see parts 1-3 in our previous posts. STEP 2: Does a trust return need to be filed? After determining that a bare trust arrangement exists, it is important to determine whether an exception from filing a trust return is available. Some of the more common exceptions include the following: trusts in existence for less …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 4) Read More »
Please see the first and the second part in our previous posts. Business Administration Reasons a corporate bank account is opened by the shareholders with the corporation being the beneficial owner of the funds; a corporation is on title of an individual’s real estate, vehicle or other asset, and vice-versa; assets registered to one corporation …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 3) Read More »
Please see the first part in our previous post. STEP 1: Does a bare trust arrangement exist? To determine if a bare trust arrangement exists, the following question should be asked: Is the person on title or holding the asset the true beneficial owner? For example, do they get the benefits of the asset (such …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 2) Read More »
New rules aimed at providing more transparency on beneficial ownership of assets now require that more trusts (and estates) file tax returns. These changes will catch many individuals and businesses that may not be aware of their trust-like relationships, exposing them to potential penalties and other consequences for non-compliance. The rules become effective in 2023, …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 1) Read More »