CRA’s handling of bare trust reporting rules needs ‘systemic review,’ MP says
A Conservative MP is calling on the taxpayers’ ombudsperson to conduct a “systemic review” of the Canada Revenue Agency‘s recent handling of bare trust reporting requirements.
Adam Chambers, the Member of Parliament for Simcoe North, said in a letter to François Boileau’s office Monday that he wants an examination of “a lack of procedural fairness,” as well as “prima facie violations of rights” under the Taxpayers Bill of Rights.
The CRA filing requirement for bare trust arrangements was new this year, but many Canadians were likely unaware of its existence or even that they may be part of such an arrangement.
However, on March 28, the CRA announced that Canadians with bare trust arrangements would no longer be required to file a T3 tax return and Schedule 15 unless the agency makes a direct request for these filings. The change came just days before the April 2 deadline to file.
The CRA said the decision was made “in recognition that the new reporting requirements for bare trusts have had an unintended impact on Canadians.”
Chambers noted that in his own letter, and raised concern that no new information was made available within the last week of the filing deadline.
“The rules were seen as confusing as they were when they were initially proposed and professionals had been seeking guidance from the CRA with little substantive response,” he wrote.
In his letter, Chambers wrote that while the CRA’s decision to retract the reporting requirement was welcomed by some, it showed a “complete disregard for the concerns and negative impacts felt by taxpayers.”
Bare trusts aren’t new, but this was the first time the arrangements had to be filed and reported to the CRA for the 2023 tax year.
The agreements often involve people who
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