Finance Proposes Complicated Amendments to Trust Reporting Requirements
By Terrance S. Carter, Jacqueline M. Demczur and Adriel N. Clayton Aug 2024 Charity & NFP Law Update
Published on August 29, 2024
As reported in earlier 2024 and 2023 editions of our Charity & NFP Law Update, trust reporting requirements under the Income Tax Act (“ITA”) have been significantly expanded pursuant to detailed and complicated amendments introduced through Bill C-32, the Fall Economic Statement Implementation Act, 2022 (“Bill C-32”). Following the introduction of Bill C-32, administrative exemptions were announced by the Canada Revenue Agency (the “CRA”) on November 10, 2023 and March 28, 2024. Further complicated amendments to the trust reporting rules have now been proposed pursuant to draft legislation published by the Department of Finance Canada (“Finance”) on August 12, 2024 as Legislative Proposals Relating to the Income Tax Act and the Income Tax Regulations (Technical Amendments) (the “Draft Legislation”). This is an exceedingly complex area of the law. As a result, what follows constitutes only a very general overview of certain select aspects of the Draft Legislation that will be of interest to charities and not-for-profits (“NFPs”). For a more in-depth consideration of the Draft Legislation and its implications for charities and NFPs, readers are strongly encouraged to obtain advice from their legal and/or tax professionals. To read the remainder in Charity & NFP Law Bulletin No. 528. |