Who Is a Controlling Person in Canadian Trust Reporting (T3) in Canada?

Trust reporting in Canada is no longer only about the trust's income. A trust that must file a T3 also has to tell CRA who is behind it. That information goes on Schedule 15, Beneficial Ownership Information of a Trust.

This article explains who is listed, what details are requested, which trusts may not need to file, and what can go wrong if the schedule is incomplete.

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

Who must be listed on Schedule 15

Schedule 15 requests specified information on all trustees, settlors, beneficiaries and controlling persons. A settlor is the person who set up the trust by contributing property. A beneficiary is a person who benefits from the trust property, and the trustee is the person who holds it.

The term controlling person is used on the schedule alongside the other roles. Who counts as a controlling person depends on the facts and the trust documents, so ask a lawyer or accountant if you are not sure about someone.

What details are requested

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

Beneficiaries whose identity cannot be determined with reasonable effort may be described in Part C of Schedule 15. A person who must give a tax identification number to the trustee and fails to may be liable to a $100 penalty under ITA s. 162(6) for each failure.

Which trusts have to file

Under s. 150(1.2), a resident express trust must file a T3 unless a listed condition applies. The conditions include a trust that has existed less than three months, or one holding assets with a total fair market value not exceeding $50,000 throughout the year. Other exemptions cover registered charities, mutual fund trusts, graduated rate estates and certain registered plans.

Another exemption applies where every trustee is an individual, every beneficiary is an individual related to each trustee (or a graduated rate estate of one), total fair market value is at most $250,000 at all times, and assets are only listed low-risk types such as cash, GICs, listed securities and mutual funds.

Schedule 15 must be filed each taxation year with the T3 return even if there are no changes, though information previously reported can be carried forward. The T3 is due no later than 90 days after the trust's tax year-end.

Bare trusts and privileged information

Bare trusts are not subject to the trust reporting rules, and need not file a T3 or Schedule 15, for taxation years ending on or after December 31, 2024 and before December 31, 2026. Reportable bare trusts are caught for years ending on or after December 31, 2026.

The reporting provisions in s. 150(1.1) to (1.3) do not require disclosure of information covered by solicitor-client privilege.

What to do next

• List every trustee, settlor and beneficiary, and ask a professional who else may be a controlling person.
• Collect names, addresses, dates of birth, countries of residence and tax identification numbers.
• Ask each person early for their tax identification number, because missing numbers leave the schedule incomplete.
• Check whether an exemption from filing applies to your trust.
• Mark the T3 due date, which is 90 days after year-end.

If the T3 or Schedule 15 information is late, the penalty can be 5% of the unpaid tax plus 1% for each full month late, to a maximum of 12 months. Where there is no unpaid tax, the alternative penalty is $25 a day, with a minimum of $100 and a maximum of $2,500.

Frequently asked questions