Months after confusion over whether Canadians needed to file trust tax returns by the April 2 deadline, we now know how many actually filed them, even after the Canada Revenue Agency hit the pause button.
According to the Minister of National Finance, Marie-Claude Bibeau, from January 1 to April 16 of this year, 44,034 tax returns were filed.
John Oakey, vice-president of tax at the Chartered Professional Accountants of Canada, said that figure doesn’t surprise him.
“It was expected that a certain number of trusts would be filed because you are preparing in advance to do these things before the deadline,” he told Global News.
However, he warns that there are problems, due to Bibeau noting that the figures could change and the fact that there may be other basic trusts, either from those who were in the process of filing or from those who did not know they had a trust that would do it. needs to be archived.
The CRA recently introduced the filing requirement for bare trust arrangements this year.
Breaking news from Canada and around the world delivered to your inbox, as it happens.
That trust refers to legal ownership of a property or account that does not coincide with who has the right to it.
This may include a parent co-signing and holding a child’s mortgage or a joint bank account between an adult child and an elderly parent.
Regardless of the confusion, some taxpayer advocates are calling for the CRA and the government to take action.
“The CRA owes each and every one of those 44,000 Canadians an apology,” Franco Terrazzano, federal director of the Canadian Taxpayers Federation, told Global News. “It created mental and financial stress for Canadians.”
Accountants have also been left in the lurch, and Chris Dyck, partner at Avisar Chartered Professional Accountants, told Global News there’s more to it than just hitting send.
“The time we spend in advance in February and March, when we’re obviously a little bit busy (it’s our busiest time of the year), that’s really the nice thing is that the government introduced this, we do all the work to prepare and then they change the rules,” Dyck said.
A spokesperson for Bibeau told Global News that the pause that began in late March is in effect for one year “to give Canadians time to properly understand the rules,” although he noted that those who filed their taxes will still have them accepted and processed. your tax forms.
Changes needed to pure trust rules: accountants
Oakey and Dyck say now is the time for the CRA and the federal government to consult with taxpayers, advisors and other stakeholders to ensure changes are made that make it easier for Canadians to know what to do.
Dyck suggested the government consider changing the legislation on the rules so that certain situations, such as an adult child having their name on the deed to their parents’ property, do not need to be reported.
“I think the first option, of just setting rules so that they actually address who is going after them, would be very beneficial,” Dyck said.
From there, Oakey said is where work can be done to improve communication of the amended rules.
“That way, the general public and advisors have an idea of what the government is looking for and what is captured by the basic trust reporting rules,” Oakey said.
– with files from Naomi Barghiel of Global News
© 2024 Global News, a division of Corus Entertainment Inc.
