Do Trusts Have to File a T3 Return With the CRA in Ontario?
Many trusts in Ontario must file a T3 return with the CRA, but not all of them. A Canadian-resident express trust that is not a listed trust generally has to file. Other trusts file only if they meet conditions such as having tax payable or being asked to file.
Some trusts are listed trusts and are generally exempt from filing, but the list of listed trusts can change, so it is worth confirming whether yours qualifies. A trust that must file generally also reports beneficial ownership information on Schedule 15. The T3 is due no later than 90 days after the trust's tax year-end, so a December 31, 2025 year-end meant a March 31, 2026 deadline.
Late filing carries a penalty of 5% of the unpaid tax, plus 1% of the unpaid tax for each full month the return is late, up to 12 months. Where no tax is owing, filing late costs $25 a day, with a minimum of $100 and a maximum of $2,500. Bare trusts follow their own timetable, and whether your arrangement must file depends on its terms, so a lawyer or accountant can confirm.
Key takeaways
- A Canadian-resident express trust that is not a listed trust generally has to file a T3 return.
- Listed trusts are generally exempt from filing under Income Tax Act s. 150(1.2), and which trusts are listed can change, so it is worth confirming whether yours is one.
- A T3 return is due no later than 90 days after the trust's tax year-end.
- Late filing can cost 5% of the unpaid tax plus 1% for each full month late, or $25 a day with a $100 minimum where no tax is owing.