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Bare Trusts

Does a bare trust exist?

 

The CRA would consider a bare trust to exist where a person is merely vested with the legal title to property and has no other duty to perform, responsibilities to carry out, or powers to exercise as trustee of the trust property. 

 

In the CRA's view, someone other than the trustee controls the property, and accordingly carries on the commercial activity that relates to the property. The CRA views these persons as being the owner of the property for GST purposes. The person or persons with the real ownership of the property may be a "beneficiary", or a "settlor" under trust law.

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Filing requirements

 

All trusts, unless specific conditions are met, must file a trust return and schedule 15 for tax years ending after December 30, 2023. For bare trusts, the CRA has waived the requirement for the 2023 tax year and is working to clarify the reporting requirements for 2024 and beyond.
 

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