CRA indicates that a bare trust has a calendar taxation year end, even if terminated before year end

The property held by a nominee corporation as the trustee of a bare trust is sold early in the year, the proceeds distributed on the termination of the trust, and the nominee then dissolved, also before December 31.

CRA indicated:

• Pursuant to s. 249(1), the bare trust would have a calendar taxation year for s. 150 purposes, so that its filing deadline for the T3 return would be 90 days after the end of the calendar year (before taking into account the CRA dispensation for bare trusts for their 2023 taxation years).
• Regarding the dissolved nominee, “[t]he trustee of a trust is responsible for filing a T3 return required under paragraph 150(1)(c), including Schedule 15 (where required by section 204.2 of the Income Tax Regulations), for the taxation year of the trust.”

It is difficult to make sense of the second point, but CRA evidently would want the return filed even with the trustee gone.

Neal Armstrong. Summary of 7 May 2024 CALU Roundtable Q. 12, 2024-1005851C6 under s. 249(1)(c).