During the 2018 budget process, the government proposed changes to the rules that effect tax reporting on some Trusts. This change was debated over the next several years and ultimately was passed in 2023. We briefly reported on this last fall, but one of the accounting firms that we are familiar with recently raised this again, and we think it is worth highlighting.
The new tax rules came into force in January and may require some of you to make additional tax filings for the 2023 taxation year. In an effort to improve the collection of information with respect to trusts, CRA is now, among other things, requiring certain trusts to start filing an annual tax return, when they were previously exempt,
Below are a few examples of situations that may attract additional filing requirements:
- You hold a joint bank account with a parent or child (with a market value of more than $50,000);
- You hold a bank account “in trust for” a parent or child (with a market value of more than $50,000); and
- You are registered on title of property with a parent or child.
If any one of the above examples applies to you, please reach out to your accountant for a better understanding of how these new rules might impact your reporting requirements.
As always, we are happy to help if you have any questions or concerns.
All the best,
Livingston Wealth Management Group