--- title: "Bare Trust Reporting in Canada: Where T3 Filing Stands Now" url: https://www.everstonecpa.com/blog/bare-trust-reporting-canada description: "What a bare trust is, the arrangements that commonly are one, and where T3 reporting stands after the exemptions that have applied. Check the status." type: guide updated: 2026-10-08 summary: "A bare trust exists when one person holds registered legal title to property while another holds every real attribute of ownership. The arrangement is common and usually harmless. What has moved repeatedly is whether it must file a T3 return — relief was granted for several years, and the rule changes again. The current status of the requirement is tracked on the bare trust reporting update ." faq_count: 6 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Blog](https://www.everstonecpa.com/blog) Bare trust reporting in Canada: the arrangement and the filing question Tax # Bare trusts in Canada: *the arrangement and the filing question* By EverStone CPA · Updated September 2026 · 9 min read **Quick answer:** A bare trust exists when one person holds registered legal title to property while another holds every real attribute of ownership. The arrangement is common and usually harmless. What has moved repeatedly is whether it must file a T3 return — relief was granted for several years, and the rule changes again. The current status of the requirement is tracked on the [bare trust reporting update](https://www.everstonecpa.com/tax-update/bare-trust-reporting). The arrangement is settled law. The filing rule is what moved. **Rather have a CPA handle this?** A CPA at EverStone replies with a straight answer and a fixed fee for your situation. [Get My Fixed Quote →](https://www.everstonecpa.com/book-online) ## Key takeaways - A bare trust is an arrangement where the trustee acts as agent for the beneficiaries, holds legal title, and can take no action without instructions. - The term is not defined in the Income Tax Act; the concept comes from subsection 104(1) and from provincial private law. - Bare trusts were brought inside the reporting rules, then relieved — no filing was required for 2023 absent a direct request, and the rules did not apply for years ending in 2024 or 2025. - Certain bare trusts, described in subsection 150(1.3) with exceptions in subsection 150(1.31), are subject to the rules for taxation years ending on or after December 31, 2026. - Because this requirement has changed several times, confirm the position for the specific taxation year before filing anything or skipping anything. Bare trust reporting has been introduced, relieved, legislated away and reinstated in narrower form within four years. The arrangement is ordinary; its reporting is not. This guide separates the two. ## What a bare trust actually is The term is not defined in the *Income Tax Act*. Subsection 104(1) provides that a bare trust for income tax purposes is a trust arrangement under which the trustee can reasonably be considered to act as agent for all the beneficiaries with respect to all dealings with all of the trust’s property. The CRA’s test: the trustee acts as agent when they have no significant powers, act only on the beneficiary’s instructions, and simply hold legal title. A family trustee exercises discretion and owes fiduciary duties. A bare trustee is a nameplate: title sits with them, while possession, use, risk and control sit elsewhere. **Holding property in trust for someone?** We confirm whether a T3 is due and prepare it, at a fee quoted in writing before any work starts. See [our tax services](https://www.everstonecpa.com/tax-services), or [ask for a fixed fee](https://www.everstonecpa.com/book-online). [Get My Fixed Quote](https://www.everstonecpa.com/book-online) ## Why owners hold property this way Bare trust arrangements are common, and most exist for reasons unrelated to tax. The CRA’s own example is a property developer establishing a bare trust to hold registered title for privacy reasons while retaining beneficial ownership. Other everyday patterns include: - A parent added to a child’s title, or a child to a parent’s, to simplify administration — often without either intending a gift. - A corporation holding title to land that a related operating company actually uses and pays for. - A nominee company holding title for several co-venturers, or a person named on an account purely for access. **Not every shared name on a title is a bare trust.** Participants might instead be joint owners or tenants in common, or the arrangement might be an express, implied or constructive trust. Characterisation is a question of fact and law under provincial private law, and the CRA does not advise on it. Not sure how this applies to you? Every corporation is different. Send an enquiry for a straight answer and a fixed quote. [Send an Enquiry →](https://www.everstonecpa.com/book-online) [See fixed fees](https://www.everstonecpa.com/pricing) ## The filing question, and why it keeps moving Bare trusts were brought into the enhanced trust reporting rules for taxation years ending on or after December 31, 2023, requiring a T3 with Schedule 15 for countless ordinary arrangements. - **2023 taxation year.** In a tax tip issued March 28, 2024, in recognition (in the CRA’s words) that the rules had an unintended impact on Canadians, the CRA announced it would not require bare trusts to file a T3 return, including Schedule 15, for 2023 unless it made a direct request for those filings. - **2024 and 2025 taxation years.** Bare trusts are not subject to the trust reporting rules and are therefore not required to file a T3 return, including Schedule 15, for taxation years ending on or after December 31, 2024 and before December 31, 2026. - **Taxation years ending on or after December 31, 2026.** Certain bare trusts are subject to the rules. These are described in subsection 150(1.3), subject to several exceptions in subsection 150(1.31), and the CRA refers to them as reportable bare trusts. The CRA has said further information would be added ahead of the relevant filing season. Read that list carefully. The requirement is narrowing, but “certain bare trusts” is defined by statute and CRA guidance was still developing. **Confirm the requirement for the taxation year you are filing before preparing a return or deciding not to.** ## What a bare trust return looks like when one is required A bare trust return is mostly blank. Enter the bare trust code and creation date, send the trust document in the first filing year unless already submitted, and complete Schedule 15 in full. All income, gains and losses go on the beneficial owner’s return. ## What to do now, regardless of the year The reporting requirement has moved. The underlying facts have not, and they are what any future filing gets built from. - **Identify the arrangements.** Walk the titles, accounts and registrations in your business and family, and note anywhere legal title and beneficial ownership sit with different people. - **Get the characterization right.** Bare trust, express trust, joint ownership and agency are different things with different consequences. - **Write it down.** Many bare trusts are undocumented. A short declaration recording who holds title, for whom, and since when belongs in the permanent side of your [record retention system](https://www.everstonecpa.com/blog/bare-trust-reporting-canada). - **Watch the adjacent regimes.** The same arrangement can matter for the [Underused Housing Tax](https://www.everstonecpa.com/blog/underused-housing-tax-canada-corporations), where holding property as a trustee is its own ownership capacity, and for the wider [expanded T3 reporting rules](https://www.everstonecpa.com/blog/trust-reporting-rules-canada-t3) if it turns out not to be a bare trust at all. ## The bottom line A bare trust is simple: one name on title, someone else holding the substance. Whether it must report annually has kept changing: relief, then legislation, with a narrower rule scheduled. Document the arrangement now and confirm the requirement each year. Sources - [Canada Revenue Agency — Enhanced reporting rules for trusts and bare trusts: FAQ](https://www.canada.ca/en/revenue-agency/services/tax/trust-administrators/t3-return/enhanced-reporting-rules-trusts-bare-trusts-faq.html) - [Canada Revenue Agency — Trust income tax return](https://www.canada.ca/en/revenue-agency/services/tax/trust-administrators/t3-return.html) - [Canada Revenue Agency — T4013, T3 Trust Guide](https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4013.html) This article is general information for Canadian business owners and is current as of July 2026. It is not tax, legal or accounting advice, and it does not create a client relationship. Tax rules change and your situation is unique, so please [speak with a CPA](https://www.everstonecpa.com/book-online) before acting on anything here. About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. [About the firm →](https://www.everstonecpa.com/about) · [Send an enquiry →](https://www.everstonecpa.com/book-online) ### Keep reading [Expanded T3 trust reporting →](https://www.everstonecpa.com/blog/trust-reporting-rules-canada-t3) [Underused Housing Tax and corporations →](https://www.everstonecpa.com/blog/underused-housing-tax-canada-corporations) [Business advisory →](https://www.everstonecpa.com/advisory-services) FAQ ## Frequently asked questions **What is a bare trust?** The term is not defined in the Income Tax Act. Subsection 104(1) provides that a bare trust for income tax purposes is an arrangement under which the trustee can reasonably be considered to act as agent for all the beneficiaries with respect to all dealings with all of the trust’s property. **Why do people hold property through a bare trust?** Usually privacy or convenience, not tax: a developer holding title through a bare trust, a parent and child on one title, or a nominee company holding land for co-venturers. **Do bare trusts have to file a T3 return?** That has changed more than once. The CRA did not require bare trusts to file for 2023 unless it made a direct request. Bare trusts are not subject to the reporting rules for taxation years ending on or after December 31, 2024 and before December 31, 2026, but certain bare trusts are subject to them for years ending on or after December 31, 2026. Confirm the requirement for the year being filed. **What is a reportable bare trust?** The CRA uses that phrase for the bare trusts subject to the reporting rules for taxation years ending on or after December 31, 2026. They are described in subsection 150(1.3), subject to several exceptions described in subsection 150(1.31). **How is a bare trust’s T3 return different from an ordinary one?** Most of it is left blank. The trust is identified using the bare trust code with its creation date, a copy of the trust document is provided in the first filing year, and Schedule 15 is completed in full. Income, [capital gains](https://www.everstonecpa.com/investment-income-and-capital-gains) and losses from the trust property go on the beneficial owner’s own return. **What should an owner do if the arrangement was never documented?** Identify it and record it now. Confirm with a legal advisor whether the arrangement is a bare trust, an express trust, an agency relationship or simple co-ownership, since the CRA does not advise on the application of provincial private law. ## Holding title to property for someone else? Email us who holds the title and who the property is really for. A CPA replies by email within one business day with whether a return is due and a fixed fee. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Book a Paid Advice Call](https://www.everstonecpa.com/advice-call) ## Have a question about this? Ask free through [the quick-question form](https://www.everstonecpa.com/quick-question); a CPA replies within one business day. Need more? A 45-minute **Advice Call** is $225 plus GST, credited to your first invoice if you become a client within 60 days. Want us to take it on? [Send an enquiry](https://www.everstonecpa.com/book-online). 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