Mandatory disclosure rules – Overview

Disclosure rules for reporting transactions

New disclosure rules are in effect.

Canada’s enhanced mandatory disclosure rules are a set of reporting requirements which received royal assent on June 22, 2023. Enhancements to the rules align with international best practices and aim to better provide the Canada Revenue Agency (CRA) with information to respond to tax risks. 

Who may be impacted: individuals, corporations, trusts, partnerships, advisors, promoters or certain non-arm’s length parties.

These rules (Income Tax Act sections 237.3 to 237.5) consist of:

These rules apply to:

Guidance to the mandatory disclosure rules is available.

Not complying with these mandatory disclosure rules will result in financial penalties and extended reassessment periods.

Reportable transactions

For a transaction to be reportable, it must be an “avoidance transaction”

  • Definition: Avoidance transaction

    “Avoidance transaction” means a transaction if it may reasonably be considered that one of the main purposes of the transaction, or of a series of transactions of which the transaction is a part, is to obtain a tax benefit.

    “Tax benefit” means

    (a) a reduction, avoidance or deferral of tax or other amount payable under this Act, and includes a reduction, avoidance or deferral of tax or other amount that would be payable under this Act but for a tax treaty,

    (b) an increase in a refund of tax or other amount under this Act, and includes an increase in a refund of tax or other amount under this Act as a result of a tax treaty, or

    (c) a reduction, increase or preservation of an amount that could at a subsequent time

    (i) be relevant for the purpose of computing an amount referred to in paragraph (a) or (b), and

    (ii) result in any of the effects described in paragraph (a) or (b); (‘this Act’ refers to the Income Tax Act)



the transaction has one of these three generic hallmarks:

  • a contingent fee arrangement
  • confidential protection
  • contractual protection

When you must disclose a reportable transaction

You must disclose a reportable transaction if you are:

Notifiable transactions

A transaction becomes a notifiable transaction if it is the same or substantially similar to one that is designated by the Minister.

  • Definition: Substantially similar

    (a) includes any transaction, or series of transactions, in respect of which a person is expected to obtain the same or similar types of tax consequences (as defined in subsection 245(1)) and that is either factually similar or based on the same or similar tax strategy; and

    (b) is to be interpreted broadly in favour of disclosure.


Notifiable transactions designated by the Minister

The Minister of National Revenue can designate transactions to be notifiable transactions in concurrence with the Minister of Finance.

Note: The list of notifiable transactions will be linked when designated.

When you must disclose a notifiable transaction

You must disclose a notifiable transaction if you are:

Reportable uncertain tax treatment

An uncertain tax treatment is a tax treatment used, or planned to be used, in an entity’s income tax filings for which there is uncertainty over whether the tax treatment will be accepted as being in accordance with tax law.

A corporation must report an uncertain tax treatment when all of the following apply:

How to disclose and by when

Reportable transactions and notifiable transactions

To make a disclosure

Fill out and submit Form RC312, Reportable Transaction and Notifiable Transaction Information Return.


You must submit Form RC312 to the CRA within the earlier of :

Reportable uncertain tax treatments

To make a disclosure

Fill out and submit Form RC3133, Reportable Uncertain Tax Treatments Information Return.


Submit the form on or before the corporation’s regular tax filing deadline.

Penalties for non-disclosure or late filing

If you do not file Form RC312 or Form RC3133 or you file late, you will be charged penalties.   

Reportable and notifiable transaction penalties

  Weekly Maximum
Corporations with assets of $50M or more $2,000 The greater of $100,000 or 25% of the tax benefit
All other taxpayers (e.g. : individuals, partnerships, corporations, etc.) $500 The greater of $25,000 or 25% of the tax benefit

Promoters, advisors and others directly involved:

  • 100% of the fees charged
  • plus $10,000
  • plus $1,000 per day up to a maximum of $100,000

  • equals Total penalties owed

Penalties for reportable uncertain tax treatments

$2,000 a week to a maximum of $100,000 (for each uncertain tax treatment)   

Reassessment periods

When a Form RC312 or Form RC3133 is not filed, an assessment or reassessment for the respective transaction(s) can be made at any time for up to:

Related Information

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