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Trust Reporting in Canada Just Changed. Here’s What T3 Filers Need to Know for 2025 and Beyond

Recent changes to Canada’s trust reporting rules are designed to reduce unnecessary filings while tightening transparency where it matters. If you act as a trustee or hold assets in trust, understanding what no longer needs to be filed is just as important as knowing what still does. Clear rules mean fewer surprises and better compliance planning.

Why the Rules Were Updated

In November 2025, the federal government introduced Bill C-15, proposing amendments to the Income Tax Act that directly affect trust reporting. The intent is to narrow mandatory filings to trusts that present meaningful tax risk, rather than applying a blanket approach.

Temporary Relief for Bare Trusts

Based on the proposed legislation and CRA guidance, bare trusts are not expected to file a T3 return or Schedule 15 for taxation years ending in 2025.

• Mandatory filing is deferred until taxation years ending on or after December 31, 2026
• Taxpayers may still file voluntarily under existing law

Important: This is a deferral, not an exemption. Bare trust reporting is coming.

Trusts That May Avoid Schedule 15

For taxation years ending on or after December 31, 2025, some trusts may still file a T3 return but will not need to complete Schedule 15 if specific conditions are met.

Special Purpose Trusts

Certain trusts established under federal or provincial law, such as bankruptcy trustee arrangements or guardianship trusts, may also qualify for relief from enhanced reporting.

What Trustees Should Do Now

• Confirm trust classification and asset values
• Document eligibility for exemptions
• Monitor Bill C-15 for final enactment

These changes reward accuracy and early review. Trustees who reassess their obligations now will avoid unnecessary filings and stay ahead of future enforcement.

Source: CRA

Two Millionaires, One Costly Pattern: The Early Mistakes That Limit Wealth

Wealth rarely breaks because of bad ideas. It breaks because of delayed action and misplaced comfort. In Episode 782 of My First Million, Sam Parr and Shaan Puri reflect on the early decisions that quietly limited their upside and what they would change if starting again.

The Real Cost of Playing It Safe

Their most expensive mistakes were subtle.

• Staying too long in stable roles
• Choosing security over ownership
• Waiting for certainty before acting

Comfort, they argue, caps growth.

Where Millionaires Are Actually Made

Job titles matter less than exposure.

• Work near revenue and decision making
• Prioritize equity over salary
• Learn inside fast growing companies

Leverage beats credentials.

How Wealth Compounds

Long term wealth comes from repeatable advantages.

Real financial freedom buys time and control, not status.

The Takeaway

Focus early on ownership, skill density, and optionality. Delay comfort. Compound consistently.

Plan Ahead, Not Under Pressure: Using Home Equity Before Costs Catch Up

Rising costs are putting real pressure on Canadian households. If you have equity in your home, the key advantage is choice. Acting early gives you more control, more flexibility, and better financial outcomes than reacting once things feel tight.

Why Planning Ahead Matters

Financial stress rarely appears overnight. It builds quietly, often while credit is still strong. That window matters.

• Strong credit expands your options
• Decisions are made calmly, not urgently
• Costs are typically lower

Waiting until credit is maxed or damaged changes the math fast.

Home Equity as a Planning Tool

Equity can be explored proactively, not defensively. Refinancing or consolidating debt earlier can help preserve long-term financial health.

• Improve monthly cash flow
• Reduce pressure from rising expenses
• Maintain flexibility for future needs

Early Action vs. Late Reaction

Timing shapes outcomes more than people expect.

The Risk of Waiting

When finances feel tight, choices shrink. Credit becomes more expensive. Flexibility disappears.

Planning ahead protects options. Scrambling later limits them.

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The Complete Map of Personal Tax Deductions and Credits Canadians Rarely Use Well

Most tax returns fail in the same place. Not income. Not math. Awareness. Canada’s personal tax system offers over 100 deductions, credits, and expenses, yet most households claim only a fraction. The difference between an average return and an optimized one is knowing how the system is structured and where savings actually hide.

First, Understand the Three Levers

Not all tax savings work the same way. Treating them as interchangeable is a mistake.

Deductions
Reduce income before tax is calculated. Best for higher earners.

Non refundable credits
Reduce tax owing but cannot create a refund.

Refundable credits
Create cash back even when little tax is owed.

High Impact Deductions to Review Annually

If these apply and are missed, the cost is real.

• RRSP and FHSA deductions
• Child care and moving expenses
• Employment and self employment expenses
• Pension and CPP related deductions

Credits People Assume Don’t Apply to Them

This assumption is usually wrong.

✔ Spouse or eligible dependant amounts
✔ Disability and caregiver credits
✔ Medical expenses and tuition transfers
✔ Home buyers and accessibility credits

Where Refunds Are Often Created

Refunds do not come only from tax withheld.

Most missed tax savings come from credits dismissed as “not for me.”

Why Line Numbers Are Non Negotiable

Each deduction and credit is tied to a specific line. Misplacing one can erase it entirely.

Source: CRA

Bare Trust T3 Filing for 2025: What the CRA Put in Writing

Most people assume that if a trust exists, a T3 must be filed. For 2025, that assumption is wrong. Fraser explains this clearly in our latest video on TikTok, pointing directly to the CRA’s own website for proof.

What the CRA Says

Fraser walks through the CRA page Filing a trust’s T3 return, updated December 16, 2025. Based on proposed Bill C-15, the CRA does not expect bare trusts to file a T3 return for taxation years ending in 2025. This also includes Schedule 15, the new beneficial ownership reporting.

This does not apply to all trusts.

@taxmechanic

CRA just clarified something that’s been confusing a lot of people filing trust returns in 2026. If you have a bare trust and you’re wonde... See more

What Is a Bare Trust

A bare trust exists when the person on title acts only as an agent.

• No control over the property
• No independent decision making
• Acts strictly on instructions

Income and capital gains are reported by the beneficial owner, not the trust.

Other Trusts With Relief

Bare trust filing is paused for 2025, not permanently removed.