When Is the First T3 Return Due for a Reportable Bare Trust in Canada?

If you hold property on behalf of someone else, or someone holds it for you, you may have heard that bare trusts will soon have to file with the CRA. The practical question is simple: when is the first return actually due, and what happens if you miss it?

This article explains the timeline, how the new rule became law, what the first return asks for and the penalties for filing late. It does not go through each exclusion in detail, and whether a bare trust exists at all depends on the facts.

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

The relief years and the first reporting year

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

Reportable bare trusts become subject to the trust reporting rules for taxation years ending on or after December 31, 2026. That makes 2026 the first year for which a return is due.

This relief is administrative, meaning it reflects what the CRA expects rather than a change to the law itself. If the CRA contacts you directly about a filing, speak to a tax professional about how to respond.

The due date for the first return

A T3 return is due no later than 90 days after the trust's tax year-end, and any balance owing is due in the same 90 days. For a December 31, 2026 year-end, the first return is due March 31, 2027.

If the due date falls on a weekend or a CRA-recognized holiday, the next business day applies. Most trusts have a December 31 year-end. There are exceptions, such as a graduated rate estate, which can use a non-calendar year-end for up to 36 months after death. A bare trust with a different year-end would count 90 days from that date.

How the rule became law

The reporting of bare trusts rests on section 150(1.3) of the Income Tax Act. It says that an express trust, for section 150 purposes, includes an arrangement where a legal owner holds property for the use or benefit of others and can reasonably be considered to act as their agent. The legal owner is deemed a trustee and the users or beneficiaries are deemed beneficiaries.

Bill C-15, the Budget 2025 Implementation Act, No. 1, received royal assent on March 26, 2026 (S.C. 2026, c. 3). That Act contains the amended section 150(1.2) and the new section 150(1.3) and (1.31). The Justice Laws page for the Income Tax Act, current to 2026-09-30, shows section 150(1.3) and (1.31). Exactly how and when each provision applies to your situation depends on the legislation's in-force wording, so it is worth confirming with a lawyer or accountant.

You may still see a CRA tax-tip page describing the changes as proposed and not yet enacted. That wording is out of date, so check the CRA's current trust pages and the legislation itself before relying on it.

What to fill in on the first return

On a T3 filed for a reportable bare trust, the CRA says only the fields marked with a check need completing, and the other parts of the T3 can be left blank. Income, capital gains and capital losses from the trust property should be reported on the beneficial owner's tax return, not on the trust's T3.

If the trust has no governing document name, the CRA says to list the beneficial owner's legal name followed by the word "Trust". Schedule 15 is the demanding part. It asks for specified information on all trustees, settlors, beneficiaries and controlling persons:

• Name and address
• Date of birth, for individuals
• Country of residence
• A tax identification number, such as a SIN

Missing information such as tax identification numbers leaves the schedule incomplete, and the CRA says the trust has then not met its filing obligations. A beneficiary whose identity cannot be determined with reasonable effort may be described in Part C of Schedule 15.

Listed trusts and the penalties for missing the deadline

A reportable bare trust that is also a listed trust is not required to file unless it is requested to file.

If the T3 or Schedule 15 information is not filed on time, the penalty is generally 5% of the unpaid tax when the return was due, plus 1% of that tax for each full month late, to a maximum of 12 months. If the CRA issued a demand to file and already assessed a late-filing penalty for any of the three preceding years, the penalty may instead be 10% of the unpaid tax plus 2% for each full month late, to a maximum of 20 months. If the trust has no unpaid tax on the due date, the alternative penalty is $25 a day, with a minimum of $100 and a maximum of $2,500. A bare trust usually has no tax payable, so this is the likely penalty.

A higher penalty applies to someone who knowingly, or with gross negligence, makes a false statement or omission, or fails to file, for a non-listed trust. It is the greater of $2,500 and 5% of the highest fair market value of the trust property. A person who fails to give their tax identification number to the trustee may face a $100 penalty for each failure.

What to do next

• Confirm whether your arrangement is a bare trust, which is a question of fact.
• Check whether a listed-trust condition or an exclusion applies.
• Note your year-end and count 90 days forward.
• Collect names, addresses, dates of birth, countries of residence and SINs for everyone Schedule 15 covers.
• Ask the beneficial owner to report the income and gains on their own return.
• Speak to a lawyer or accountant if you are unsure.

The CRA says it cannot give legal advice or definitive determinations on whether a trust exists, and suggests consulting a legal advisor if you are unsure.

Frequently asked questions