Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Given that a bare trust filed a T3 return, including Schedule 15, for its 2023 tax year prior to the CRA announcement that all bare trusts would not be required to file for the 2023 tax year, and the subsequent CRA announcement which provided for a continuation of the exemption from the trust reporting requirements for the 2024 tax year, where a bare trust ceased to exist in 2024, how can the bare trust cancel its trust account number or otherwise advise the CRA that it no longer exists?
Position: The trustee may voluntarily choose to either send a letter, containing specific information to the trust's Tax Centre, or file a final T3 return for the 2024 tax year with the date on which the bare trust ceased to exist.
2025 STEP CRA Roundtable – June 17, 2025
QUESTION 3. Bare Trusts that Ceased to Exist in 2024
A particular bare trust filed a T3RET, T3 Income Tax and Information Return (“T3 return”), including Schedule 15, in respect of its 2023 tax year prior to the announcement by the CRA that all bare trusts would not be required to file for the 2023 tax year. The bare trust ceased to exist in 2024. In October 2024, the CRA announced, for the 2024 tax year, a continuation of the exemption from the trust reporting requirements that was issued for bare trusts for the 2023 tax year. As a result, the bare trust will never file a final T3 return. How can the bare trust cancel its trust account number or otherwise advise the CRA that it no longer exists?
CRA Response
To ensure that the trust account number is no longer considered active or open, the trustee may voluntarily choose to either:
- send a letter to the trust’s Tax Centre that includes:
- the trust account number
- bare trust name
- the fact that the bare trust has ceased to exist, and
- the date on which the bare trust ceased to exist; or
- file a final T3 return for the 2024 taxation year with the date on which the bare trust ceased to exist.
William King
2025-105588
Response prepared by:
Justin Lawson
T3 Special Processing and Error Inspection Section
Individual Returns Directorate
Assessment, Benefit, and Service Branch
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