Trust Tax Return
T3 Trust Tax Returns usually expire before March 31. This includes tax returns (also known as Inter Vivos Trusts) for the life trust established during the trustee’s lifetime, and testamentary trusts established by the deceased’s will. March 31 is usually also the filing deadline for Canadians holding co-funds and exchange-traded funds (ETFs).
However, in February, the Canadian Revenue Agency (CRA) pointed out:
“As a result of the increase in the change in the effective date of the proposed capital gains tax rate, the information to be reported (mainly T3, T4P and T5008) (book value) (book value) – needs to be recalculated to ensure that the taxpayer has accurate information.”
The federal government’s early 2025, until January 1, 2026, first caused delays in the current tax season until January 1, 2026, with the proposed capital return on the rise. As the federal election approaches, both the Liberals and the Conservatives are committed to abandoning the proposal. The New Democrats hope to advance it in 2026. However, the CRA announced that the T3 Trust Tax Claimant reported the T3 Trust Tax Accountant who reported capital disposals and had received relief from later fines and interest until May 1, 2025.
This means that T3 returns with capital gains or losses, and the final T3 slip of these trusts will wait until a month, plus a day later than normal. Some taxpayers who have mutual funds or ETFs in a taxable investment account may have to wait until the April 30 T1 personal tax return deadline to receive their T3 slip.
Canadian Income Tax Guide
Deadline, tax reminder, etc.
Personal tax return
Trust tips extensions follow an earlier extension granted to T1 individual tax filers. The CRA said in January that T1 individual tax filers with capital processing are eligible for fines and interest by June 2, 2025.
Taxpayers and tax preparers have found that tax relief for financial institutions is extremely delayed. In some cases, documents cannot be downloaded from CRA online accounts. As a result, we can expect the last minute of late April to rush to file tax returns, while the T1 personal tax season will be extended to May.
This situation is reminiscent of underutilized housing tax (UHT) and exposed trust tax filing chaos last year.
Related forms and elections
There are certain forms of taxation and elections (which means formal choices that affect tax laws) that should be filed simultaneously.
