By Terrance S. Carter, Theresa L.M. Man, Jacqueline M. Demczur

After much anticipation from the charitable sector, the Canada Revenue Agency (“CRA”) has finally clarified the reporting requirements for internal express trusts held by registered charities.

In accordance with a notice released by the CRA’s Charities Directorate on Friday, November 10, 2023, in response to a call by the charitable sector for clarity, the CRA announced that it will not require registered charities to file the T3, Trust Income Tax and Information Return, for internal trusts.

The announcement goes on to explain that the CRA considers that internal trusts are created when a charity receives property as a gift that is subject to certain legally enforceable terms and conditions and holds that property as the trustee of the trust. For the balance of this Bulletin, please see Charity & NFP Law Bulletin No. 523.