CPA Canada gets action on bare trusts

CPA Canada is encouraged by the Canada Revenue Agency’s March 28 announcement that bare trusts will be exempt from trust reporting requirements for the 2023 tax year, following concerns raised by CPA Canada about the impact on the uninformed public.  

CPA Canada has long been vocal about the potential that a wide array of Canadians could be caught up in the federal government’s broad-based trust reporting rules as a result of adding bare trusts to the filing requirements.  

“We have worked with the CRA over the last several months to help identify and address issues associated with bare trust reporting rules,” says John Oakey, vice-president of tax at CPA Canada. 

“CPA Canada is encouraged by CRA’s willingness to modify their trust reporting requirements and will continue to advocate for changes based on concerns brought to our attention by our members and other external stakeholders.”  

CRA stated that it will work with the Department of Finance over the coming months to further clarify its guidance on this filing requirement. 

CPA Canada has raised member concerns about the last-minute nature of the changes with the CRA after hearing from frustrated CPAs following the announcement in March.  

The bare trust situation is another reminder that a review of our complex tax system is long overdue. As we suggested in our pre-budget consultations, Canada’s tax system has become increasingly convoluted and difficult to comprehend, even for experienced tax professionals. CPA Canada will continue to advocate for more collaboration between the government and the private sector to ensure thoughtful and appropriate tax legislation.  

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Photo caption: Canada Revenue Agency national headquarters building and signage (Shutterstock)