{"id":37205,"date":"2023-11-10T10:29:35","date_gmt":"2023-11-10T15:29:35","guid":{"rendered":"https:\/\/www.cccc.org\/news_blogs\/?p=37205"},"modified":"2023-11-10T11:06:42","modified_gmt":"2023-11-10T16:06:42","slug":"blog-post-charities-do-not-have-to-file-t3-returns-for-internal-trusts","status":"publish","type":"post","link":"https:\/\/cccc.org\/news_blogs\/legal\/2023\/11\/10\/blog-post-charities-do-not-have-to-file-t3-returns-for-internal-trusts\/","title":{"rendered":"Charities Do Not Have to File T3 Returns for Internal Trusts"},"content":{"rendered":"\n

Today, CRA confirmed that charities do not have to file T3 returns for internal trusts<\/a>.<\/p>\n\n\n\n

CRA\u2019s Update<\/h2>\n\n\n\n

We are very pleased to see that CRA will not<\/u><\/strong> require registered charities to file separate T3 Trust Income Tax and Information Returns for internally held trusts.<\/p>\n\n\n\n

CCCC and many other stakeholders expressed concern over the possibility that charities would be required to file separate returns for internal trusts (in addition to the T3010) as a result of Income Tax Act<\/a> <\/em>amendments in Bill C-32<\/a>.<\/p>\n\n\n\n

We encouraged a solution that emphasized simplicity, clarity and timeliness and are thankful for this positive outcome. This means that CRA will continue its sensible administrative position toward reporting for charities that hold internal trusts, as CCCC and many others urged.<\/p>\n\n\n\n

This outcome recognizes that all funds held by charities are already reported on the T3010 and are applied to exclusively charitable purposes. It also recognizes the legislative intent for expanding trust reporting requirements was not aimed at registered charities’ internal trusts, and that transparency is achieved through existing reporting requirements.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

What are internal trusts?<\/h2>\n\n\n\n

CRA has clarified that internal trusts are created when a charity:<\/p>\n\n\n\n