What specific changes should I anticipate for bare trusts reporting in 2026?

For the 2026 tax year, bare trusts will generally be required to file a T3 Income Tax and Information Return, along with Schedule 15. This marks a shift from previous years where many bare trusts were exempt. The enhanced reporting aims to boost transparency regarding trust ownership and financial activities.

What are the implications of the enhanced bare trust reporting rules for my tax obligations in 2026?

For the 2026 tax year, many bare trusts will face new T3 Income Tax and Information Return filing obligations with the Canada Revenue Agency (CRA), including Schedule 15. Non-compliance with these enhanced rules can lead to penalties. It is essential to determine if your arrangements qualify as a bare trust and ensure accurate reporting.

Will the Canada Revenue Agency offer extensions for bare trust reporting requirements in 2026?

While there have been temporary exemptions previously, bare trusts are currently expected to comply with the new reporting requirements for the 2026 tax year. Preparing well before the December 31 year-end is crucial to avoid potential late filing penalties from the Canada Revenue Agency.

Are bare trusts with minimal assets exempt from the 2026 reporting requirements?

No, bare trusts with minimal assets are generally not exempt from the 2026 reporting requirements. The enhanced rules apply broadly to bare trusts unless specific exemptions are met. It is crucial to determine if your arrangements constitute a bare trust to ensure compliance and avoid penalties.

Bare Trusts Reporting 2026: Key Updates

Stay informed on bare trusts reporting 2026 updates. Understand the proposed changes for deemed trusts and their impact on your tax obligations.

Find updates to Bare Trust Reporting for 2026 here.

Proposed Changes for Deemed Trusts in 2025

Newly proposed legislation has created a new reporting category called “deemed trusts” that may replace bare trusts.

These changes would apply for tax years ending on or after December 31, 2025.
If enacted, affected trusts would need to file a T3 Trust Income Tax and Information Return by March 31, 2026.

What Is a Bare or Deemed Trust?

A bare trust exists when someone holds an asset in name only, for the benefit of someone else. Common examples include:

Parent on title for a child’s home or bank account
Adult child added to a parent’s house title
Corporation using an asset held in an individual’s name
Joint accounts used for convenience

Reporting a Bare or Deemed Trust

If filing is required, you’ll need to disclose details for all parties involved:

Names, addresses, dates of birth
Residency and social insurance or tax identification numbers
Roles (trustee, beneficiary, settlor, etc.)

Penalties for failing to file or filing late can be up to $2,500, with possible additional fines for gross negligence.

Learn more about proposed changes to deemed or bare trust reporting here.

Accounting and Advisory Support for Canadian Business Owners

KWB Accountants & Advisors strives to keep business owners informed of changes in tax laws and legislation that can impact you. Stay tuned for information on this proposed change. We will share updates and details if and when these proposed changes take effect.

KWB helps business owners to simplify your accounting, improve your profit, and achieve your goals. Book an introductory meeting here to learn more about becoming a client.