T3 trust tax returns are normally due by March 31. This includes tax returns for living trusts (also known as inter vivos trusts) set up during a trustee’s life, as well as testamentary trusts established in the will of a deceased person. March 31 is also usually the filing deadline for Canadians who hold mutual funds and exchange-traded funds (ETFs) in taxable investment accounts.
However, in February, the Canada Revenue Agency (CRA) noted:
“as a result of the change to the effective date of the proposed capital gains inclusion rate increase, the information to be reported on certain tax slips—primarily the T3, T4PS, and T5008 (book value)—needs to be recalculated to ensure taxpayers receive accurate information.”
The federal government’s early-2025 pivot to not enforce the proposed capital gains inclusion rate increase until January 1, 2026, at the earliest has led to delays this tax season. As the federal election approaches, both the Liberals and Conservatives have committed to abandoning the proposal. The NDP wants to push forward with it in 2026. But as a result, the CRA announced that T3 trust tax filers reporting capital dispositions have been granted relief from late-filing penalties and interest until May 1, 2025.
This means that T3 returns with capital gains or losses and the resulting T3 slips for these trusts are not due until one month plus a day later than normal. Some taxpayers who own mutual funds or ETFs in taxable investment accounts may not receive their T3 slips until after the usual April 30 deadline for their T1 personal tax returns.
Personal tax returns
The trust-filing extensions follow an earlier extension granted to T1 personal tax return filers. In January, the CRA said T1 personal tax return filers with capital dispositions would be eligible for penalty and interest relief until June 2, 2025.
Taxpayers and tax preparers are finding that tax slips from financial institutions are extremely delayed. In some cases, documents aren’t available to download from CRA online accounts. As a result, we can expect a last-minute rush in late April to file tax returns, and a T1 personal tax season that extends into May.
This situation is reminiscent of the underused housing tax (UHT) and bare trust tax filing confusion last year.
Associated forms and elections
There are certain tax forms and elections (meaning formal choices that affect how tax laws will be applied) that are due at the same time a tax return is filed.
A common one is Form T1135 Foreign Income Verification Statement to report foreign assets with a cost base in excess of CAD$100,000. Penalties for filing late can be steep—$10 per day, up to a maximum of $2,500 (with a minimum penalty of $100).
The CRA says it will:
“grant relief in respect of late-filing penalties and arrears interest until June 2, 2025, for impacted T1 Individual filers and until May 1, 2025, for impacted T3 Trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations. This relief extends to any forms and/elections that are normally included with the T1 and T3 returns (e.g.: Foreign Reporting Forms, including Form T1135, Foreign Income Verification Statement).
As a result, it appears all date-sensitive filings that accompany a T1 personal tax return will be subject to the same one-month extension for 2024. The date appears to be June 2 because May 31 falls on a weekend. The CRA customarily delays any weekend deadlines to the next business day.
Returns for self-employed Canadians
Taxpayers with sole proprietorships and partnerships have an extension until June 15 each year. Their spouse or common-law partner benefits from the same extension.
This year, June 15, 2025, falls on a weekend, so the deadline for self-employed T1 personal tax filers is Monday, June 16.
Tax relief and support for corporations
In March, the federal government announced support for Canadian businesses in response to the ongoing U.S. tariff situation.As a result, the CRA will:
- Defer GST/HST remittances and corporate income tax payments from April 2 to June 30, 2025.
- Waive interest on GST/HST and T2 Corporate Income Tax Return installment and arrears payments that are required to be paid between April 2 and June 30, 2025.
- Provide interest relief on existing GST/HST and T2 balances between April 2 and June 30, 2025.
All tax filings for corporations must continue to be submitted by the applicable deadlines. So, this relief applies only to the payment of GST/HST sales tax and corporate income tax.
There’s no need to prove that a business is impacted by the tariffs or is experiencing financial hardship. This is a blanket interest-free period for all Canadian corporations.
Interest will begin to accumulate on unpaid balances on July 1, 2025.
Recap on 2024 deadlines and extensions
Although April 30 is the typical tax deadline for most taxpayers, there are some who may be entitled to an annual extension.
This year, there are special extensions due to the capital gains inclusion rate confusion and the impact of the Canada–U.S. trade war.
