Schedule 15 - Beneficial Ownership Information of a Trust

As noted on pages 18-19, for tax years ending on or after December 31, 2023 a trust (other than a listed trust) that is required to file a T3 return, generally must report beneficial ownership information on Schedule 15. This reporting requirement also applies in respect of a trust that is a bare trust.

On Schedule 15, a trust will be required to report the identity of all trustees, settlors, beneficiaries and controlling persons (which are collectively referred to as reportable entities) of the trust. You must include information for all reportable entities of the trust that existed at any time during the tax year. This includes situations where the person became a reportable entity at any time during the tax year and where the person is no longer a reportable entity of the trust at the end of the tax year for which you are filing a T3 return.

The beneficial ownership Information must be submitted on Schedule 15 - alternative methods, such as spreadsheets, PDF files or XML files will not be accepted. If you are filing the T3 return by paper, Schedule 15 must be used and multiple copies of Part B of the Schedule 15, if needed, can be mailed along with the T3 Return. The fillable PDF version of Schedule 15 allows additional Part B sections to be included.

• The trust reporting requirements do not require the disclosure of information that is subject to solicitorclient privilege.

• Beneficial ownership reporting requirements do not apply to an Amateur Athlete Trust that is not an "express trust" as that term is defined on page 7.

• Instead of a T3 return, an Amateur Athlete Trust that is an express trust (other than a listed trust) would file a T3ATH-IND, Amateur Athlete Trust Income Tax Return accompanied by a completed Schedule 15.

For more information on the additional reporting requirements, go to canada.ca/how-file-t3-return.

Who is a settlor?

The term "settlor", for purposes of the requirement to provide beneficial ownership information, is defined in subsection 17(15) of the Act:

Settlor in respect of a trust at any time means any person or partnership that has made a loan or transfer of property, either directly or indirectly, in any manner whatever, to or for the benefit of the trust at or before that time, other than, where the person or partnership deals at arm's length with the trust at that time,

Identifying Beneficiaries

The term "beneficiary" for the purposes of Schedule 15 is based on its ordinary meaning. Generally, the determination of who is a beneficiary of a particular trust requires a finding of fact based on all the relevant information, including the terms of the trust and the settlor's intent in establishing the trust. In essence, a beneficiary of a trust is a person (other than a protector) who has a right to compel the trustee to properly enforce the terms of the trust, regardless of whether that person's right to any of the income or capital is immediate, future, contingent, absolute or conditional on the exercise of discretion by any person. However, such a determination is ultimately dependant on the specific facts, terms of the trust as well as the relevant trust law.

The requirement to provide the necessary information in respect of beneficiaries of a trust on Schedule 15 will be met if the required information is provided in respect of each beneficiary of the trust whose identity is known or ascertainable with reasonable effort by the person making the return at the time of filing the return. If a beneficiary's identity is known or ascertainable, complete Part B of Schedule 15. If a beneficiary's identity is not known or ascertainable with reasonable effort, then the person making the return is required to provide sufficiently detailed information to determine with certainty whether any particular person is a beneficiary of the trust. In this case, complete Part C of Schedule 15.

Where the beneficiaries of a trust are all of the members of an Indigenous group, community or people that holds rights recognized and affirmed by section 35 of The Constitution Act, 1982, or an identifiable class of the members of such Indigenous group, community or people, provide a sufficiently detailed description of the class of beneficiaries to determine with certainty whether any particular person is a member of that class of beneficiaries.

Where some but not all of the units of a trust are listed on a designated stock exchange, the requirement to provide information in respect of the beneficiaries of the trust is met if the required information is provided in respect of the beneficiaries of the unlisted classes of units.

Who is a controlling person

For the purposes of the trust reporting requirements, the term controlling person means a person who has the ability (through the terms of the trust or a related agreement) to exert influence over trustee decisions regarding the appointment of income or capital of the trust. This would include, for example, a protector of the trust.

For more information on the additional reporting requirements, go to canada.ca/when-file-t3-return.

Completing Schedule 15

Part A - Annual beneficial ownership information

You must ensure both required questions of Part A on Schedule 15 have been completed.

If this is the first time you are providing the Canada Revenue Agency with the beneficial ownership information of the trust, you need to identify all the reportable entities of the trust.

If the trust is required to file Schedule 15, the schedule must be filed every year. Reportable entities that have been previously reported to the Canada Revenue Agency will be carried forward. When the details of an entity have changed, that new information must be submitted as a modification in Part B - Identification of reportable entities.

Part B - Identification of reportable entities

To add or modify the reportable entities of the trust, use Part B on Schedule 15. Include entities that may have been reportable for only part of the year.

Adding a reportable entity

For each reportable entity of the trust, the following information must be provided:

• name

• address

• date of birth (if applicable)

• country of residence, and

• Tax Identification Number (i.e., Social Insurance Number, Business Number, Trust Number, or, in the case of a non-resident trust, the identification number assigned by a foreign jurisdiction)

If a reportable entity is more than one entity type, Part B must be completed in full for each respective entity type.

For example, if an entity is both a Trustee and a Settlor, Part B will need to be filled out twice.

If a reportable entity was associated with the trust for only part of the tax year for which you are filing a tax return, select "Add reportable entity" and enter all of the relevant information. If the entity was no longer associated with the trust at the end of the year, select "Yes" to the question "Did the entity's association with the trust end during the year?"

Modifying a reportable entity

To modify a reportable entity that is on file with the Canada Revenue Agency, select the box "Modify reportable entity" and complete Part B in full, do not just enter the information that you want to update.

Removing a reportable entity

To remove an entity, select "Modify reportable entity" and complete Part B in full. Select "Yes" for the question "Did the entity's association with the trust end during the year?"

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