Bare Trust Reporting Is Back in the Spotlight

Beginning with taxation years ending on or after December 31, 2026, certain reportable bare trusts are expected to become subject to enhanced trust reporting requirements. The CRA has indicated that additional guidance will be released before these requirements take effect. While these rules may not affect every business owner, now is a good time to review ownership arrangements and understand whether they could apply to your business.

What Is a Bare Trust?

Generally speaking, a bare trust exists when one person or entity holds legal title to property while another person or entity is considered the beneficial owner. Whether an arrangement is reportable depends on the legal documentation and the facts of each situation.

Could Your Business Be Affected?

Some businesses use specialized ownership arrangements involving real estate or other assets where legal ownership may differ from beneficial ownership. If your corporation has this type of ownership structure—or you're simply unsure whether these rules could apply—it is worthwhile reviewing the arrangement before the new reporting requirements come into effect. Additional CRA guidance is expected before the 2026 filing season.

Planning Ahead

Now is a good time to review any ownership arrangements that may involve different legal and beneficial ownership. Our team continues to monitor these developments and will keep clients informed as further guidance becomes available.

We're Here to Help

If you have questions about whether your business or corporate ownership structure may be affected by the updated reporting requirements, we're here to help review your circumstances and discuss any reporting obligations that may arise.