Words and Phrases - "express trust"
27 August 2025 External T.I. 2025-1057461E5 - Trust Reporting, 149(5) Deemed Trust, 150(1.2)(e)
Where a deemed trust pursuant to s. 149(5) arises over the property of a non-profit organization (NPO), for example, a bank account, would the deemed trust be required by Reg. 204.2(1) to submit a Sch. 15 with its T3 return for each year?
CRA indicated that, based on its understanding that a deemed trust is not an express trust, s. 150(1.2) would not override the exemption in s. 150(1.1)(b) from filing a T3 return if the deemed trust had no Part I tax payable for the year (for example, if pursuant to s. 149(5)(f), its property income was under $2,000) and there were no relevant dispositions in the year. If the deemed trust was required to file a T3 return because the s. 150(1.1)(b) exemption did not apply, then it would indeed be required by Reg. 204.2(1) to include a Sched. 15.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 204.2 - Subsection 204.2(1) | a deemed trust (e.g., under s. 149(5)) is not subject to Sched. 15 reporting if it satisfies the historical s. 150(1.1)(b) T3 filing exception | 278 |
CRA Webpage, Enhanced reporting rules for trusts and bare trusts: Frequently asked questions, updated on 14 March 2025
Meaning of express trust
2.4. What is an express trust?
Generally, an express trust is a trust created with the settlor's express intent, usually made in writing (as opposed to a resulting or constructive trust, or certain trusts deemed to arise under the provision of a statute). Many types of trusts are express trusts.
Waiver of bare trust return filing for 2024
3.2. Are bare trusts now required to file an annual T3 Return and Schedule 15? Updated: October 29, 2024
Updated 2024 Tax year: As announced in the Tax Tip issued October 29, 2024, the Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust) for the 2024 tax year, unless the CRA makes a direct request for these filings. This is a continuation of the exemption from the trust reporting requirements that was issued for bare trusts for the 2023 tax year.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | no s. 162(7) penalty for 2023 taxation year of bare trust unless gross negligence | 142 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(5) | no s. 163(5) penalty for 2023 taxation year of bare trust unless situation egregious | 191 |
| Tax Topics - Income Tax Act - Section 104 - Subsection 104(1) | 476 | |
| Tax Topics - Income Tax Regulations - Regulation 204.2 - Subsection 204.2(1) | 66 | |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(5) | 126 | |
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1.2) - Paragraph 150(1.2)(a) | 80 |