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.
