CRA updates guidance on late filing penalties for bare trust reporting obligations

  • March 14, 2024

The Canada Revenue Agency clarified that bare trusts are exempted from penalties for the 2023 tax year for late filing for reasons other than gross negligence. The CRA acknowledges that bare trusts did not have an obligation to file a T3 Return in previous years and has decided to adopt “an education-first approach to compliance” which includes waiving the penalty payable under subsection 162(7) of the Income Tax Act for 2023 returns filed late for reasons other than gross negligence. Read more on the new reporting requirements.