The Canada Revenue Agency (“CRA”) released CRA View 2025-1054261E5 on February 18, 2026. This CRA View is a technical interpretation discussing trust reporting for non-profit organizations (“NPOs”) under paragraph 149(1)(l) and deemed trusts under section 149(5) of the Income Tax Act (“ITA”), and is substantively consistent with CRA View 2025-1057461E5 (the “Previous View”), as reported on in the January 2026 Charity & NFP Law Update.
More specifically, in the current CRA View, the main issues the CRA considered were whether paragraph 150(1.2)(e) of the ITA applies to a trust which is deemed to be created pursuant to subsection 149(5), and if so, who the trustee, settlor and beneficiaries under such a deemed trust would be.
Consistent with the Previous View, the CRA confirmed that where an NPO’s main purpose is to provide dining, recreational, or sporting facilities, subsection 149(5) of the ITA deems the NPO’s property to be held by a trust (a “Deemed Trust”), which constitutes a “second taxpayer” that is subject to tax under Part I of the ITA on its taxable income. The Deemed Trust would be required to file a T3 Return pursuant to paragraph 150(1)(c) where applicable filing conditions are met.
The CRA again states that paragraph 150(1.2)(e) does not apply to a Deemed Trust, as such a trust is not itself a club, society or association described in paragraph 149(1)(l). Where a Deemed Trust must file a T3 Return under paragraph 150(1)(c), subsection 204.2(1) of the Income Tax Regulations applies, and Schedule 15 must therefore be filed with the T3 Return to report beneficial ownership information, unless the Deemed Trust meets one of the other exceptions in paragraphs 150(1.2)(a) to (o).
Consistent with the Previous View, subsection 149(5) specifies who is deemed to act as trustee (i.e. the corporation where the NPO is incorporated, or its officers where it is not incorporated). However, it does not deem any person to be a settlor or beneficiary of the trust, nor does it identify any person in that capacity. A Deemed Trust therefore does not have a settlor or beneficiaries for purposes of the ITA.
Given the consistency between this CRA View and the Previous View, a more detailed discussion on the matter can be referenced in the January 2026 Charity & NFP Law Update, linked above.