Are Bare Trusts Exempt From CRA Trust Reporting in Canada for 2025?

Many people holding property as a bare trustee heard that bare trusts were caught by CRA's expanded trust reporting rules, then heard that CRA was easing off for now. It is fair to ask which is true for 2025.

Both are, in a sense. This article explains what the 2025 relief covers, what it does not, and what changes after it ends.

This article covers Canadian federal tax law, which applies in every province.

What the 2025 relief actually says

For taxation years ending in 2025, the CRA does not expect bare trusts to file a T3 return, including Schedule 15 (Beneficial Ownership Information of a Trust). CRA's T3 guide and FAQ state that bare trusts are not subject to the trust reporting rules, and so need not file, for taxation years ending on or after December 31, 2024 and before December 31, 2026. For 2023, CRA likewise said it would not require bare trusts to file.

Note the wording: CRA "does not expect" a filing. A bare trust that is not required to file for 2025 has nothing to file for Schedule 15. If CRA contacts you directly about a trust, or you are unsure how the relief applies to you, get advice before responding.

What the relief does not cover

• Regular express trusts. A resident express trust that is not a listed trust must file a T3. The relief is for bare trusts, not trusts with real powers and duties.
• Reporting of income. For a reportable bare trust, all income, capital gains and capital losses should be reported on the beneficial owner's tax return.
• Underused housing tax for earlier years. Affected owners do not need to file or pay for 2025 and later years, but filing and payment still apply to 2022, 2023 and 2024. CRA interprets "trust" to include a bare trust for the excluded-owner rules, so a corporation owning as trustee of a bare trust has to file.
• Deciding whether you have a bare trust. That is a question of fact, and CRA suggests consulting a legal advisor if unsure.

For underused housing tax, a trust is not a person, so the trustee who owns the residential property is the owner and files Form UHT-2900 for the year if an affected owner. CRA describes a bare trust as one where the trustee holds legal (titled) ownership, and a beneficiary is not an owner under the land registration test. The 2025 and later years no longer require a return or payment, while 2022, 2023 and 2024 still do.

What changes after 2025

Reportable bare trusts are subject to the trust reporting rules for taxation years ending on or after December 31, 2026. The first returns are for the 2026 year, due 90 days after year-end, which is March 31, 2027 for a December 31, 2026 year-end.

Bill C-15, the Budget 2025 Implementation Act, No. 1, received royal assent on March 26, 2026 (S.C. 2026, c. 3), and contains the new s. 150(1.3) and (1.31). Under s. 150(1.3), an express trust includes an arrangement where a legal owner can reasonably be considered to act as agent for the beneficiaries. Some older CRA pages may still describe these changes as proposals, so check the current wording before you rely on them.

Exceptions that may keep you out of the rules altogether

Even from 2026, s. 150(1.31) excludes some arrangements, including:

• Joint holdings where every beneficiary is also a legal owner and no legal owner is a non-beneficiary.
• Related individuals holding real property that would be the principal residence of one or more of them.
• An individual holding real property for a spouse or common-law partner where it would be the owner's principal residence.
• Property held solely for a partnership that files a partnership return, and property held under a court order.

What to do next

• Confirm whether your arrangement is a bare trust at all, and whether an exception applies.
• Make sure the beneficial owner is reporting income and gains on their own return.
• Begin gathering names, addresses, dates of birth, countries of residence and tax numbers for 2026.
• Note March 31, 2027 for a December 31, 2026 year-end.
• Check any underused housing tax filings for 2022 to 2024 if residential property is involved.
• Speak with a lawyer or accountant if CRA contacts you or the facts are unclear.

Frequently asked questions