T3 Tax Return Filing Obligations

Beginning in the 2022 tax year, certain categories of trusts must submit annual T3 Trust Income Tax and Information Returns (T3 Returns).

Most trusts, including bare trusts, must now disclose additional information about trustees and beneficiaries in the T3 Returns.

Filing T3 Returns late can result in a penalty of 5% of the unpaid balance at the time the filing was required and an additional 1% of the amount of unpaid tax for each month the T3 Return filing was late, to a maximum 12 months. Higher penalties may be given for unfiled T3 Returns where a demand for the filings were given by the Government. Trusts with no unpaid taxes on the filing date (and have filed the T3 Returns past the due date) may be subject to a fine of $25 per day, with a minimum fine of $100 and a maximum fine of $2,500.

Speak with your accountant or lawyer directly for additional information and to see whether you are required to file a T3 return for your trust.