Trust tax returns
T3 trust tax returns are normally due by March 31. This includes tax returns for living trusts (also known as inter vivos trusts) set up during a trustee’s life, as well as testamentary trusts established in the will of a deceased person. March 31 is also usually the filing deadline for Canadians who hold mutual funds and exchange-traded funds (ETFs) in taxable investment accounts.
However, in February, the Canada Revenue Agency (CRA) noted:
“as a result of the change to the effective date of the proposed capital gains inclusion rate increase, the information to be reported on certain tax slips—primarily the T3, T4psand T5008 (book value)—needs to be recalculated to ensure taxpayers receive accurate information.”
The federal government’s early-2025 pivot to not enforce the proposed capital gains inclusion rate increase until January 1, 2026, at the earliest has led to delays this tax season. As the federal election approaches, both the Liberals and Conservatives have committed to abandoning the proposal. The NDP wants to push forward with it in 2026. But as a result, the CRA announced that T3 trust tax filers reporting capital dispositions have been granted relief from late-filing penalties and interest until May 1, 2025.
This means that T3 returns with capital gains or losses and the resulting T3 slips for these trusts are not due until one month plus a day later than normal. Some taxpayers who own mutual funds or ETFs in taxable investment accounts may not receive their T3 slips until after the usual April 30 deadline for their T1 personal tax returns.
Income Tax Guide for Canadians
Deadlines, tax tips and more
Personal tax returns
The trust-filing extensions follow an earlier extension granted to T1 personal tax return filers. In January, the CRA said T1 personal tax return filers with capital dispositions would be eligible for penalty and interest relief until June 2, 2025.
Taxpayers and tax preparers are finding that tax slips from financial institutions are extremely delayed. In some cases, documents aren’t available to download from CRA online accounts. As a result, we can expect a last-minute rush in late April to file tax returns, and a T1 personal tax season that extends into May.
This situation is reminiscent of the underused housing tax (UHT) and bare trust tax filing confusion last year.
Associated forms and elections
There are certain tax forms and elections (meaning formal choices that affect how tax laws will be applied) that are due at the same time a tax return is filed.
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