The T3 is the income tax return a trust or estate files annually, due 90 days after its tax year-end, reporting income earned and allocations to beneficiaries.
A trust files a T3 Trust Income Tax and Information Return to report its income and how it was distributed. The return is due 90 days after the trust's year-end, and most personal trusts use December 31, making the deadline March 31. Income paid to beneficiaries is deducted by the trust and taxed in their hands; income retained is taxed in the trust, usually at the top rate.
Expanded reporting rules now require many previously exempt trusts, including bare trusts, to file a T3 and a Schedule 15 disclosing beneficiaries, trustees and settlors, with steep penalties for non-compliance based on trust property value.
A family trust with a December 31 year-end must file its T3 by March 31, reporting the year's income and issuing T3 slips for the amounts allocated to each beneficiary.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
Book a Free 15-Minute CallCommon questions regarding our compliance workflows and service guarantees.