If you share a bank account with a parent or relative, you may have to file a T3 return this tax season. That’s because a joint account may be considered a “bare trust.” According to new CRA trust reporting rules, these trusts are now required to file a return. Nicole Ewing, Director, Tax and Estate Planning, TD Wealth, joins Kim Parlee to provide more clarity on this issue.

*On March 12, the Canada Revenue Agency (CRA) provided some clarity around its penalty relief for bare trusts filing a T3 Return and Schedule 15 after the April 2, 2024 deadline. The CRA will waive the late-filing penalty for the 2023 tax year, except in circumstances of “gross negligence.” However, a gross negligence penalty will only be applied in the “most egregious cases” within the context of compliance action such as an audit.

*On March 28, the Canada Revenue Agency (CRA) announced it will not require bare trusts to file a T3 return for the 2023 tax year. You can visit the CRA website for more information.