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When to file

Find out when you need to file a T3 RET T3 Trust Income Tax and Information Return (T3 return).

Filing dates

The T3 return must be filed no later than 90 days after the trust’s tax year-end. You should also pay any balance owing no later than 90 days after the trust’s tax year-end.

If you do not have the information slips you need to complete the T3 return when it is due, estimate the trust’s income. If, after you receive the slips, you find your estimate differs from the actual amounts, send the slips and a letter to us, requesting an adjustment to the trust’s income. For more information, see Reassessments in the T4013 T3 Trust Guide.

Tax year-end and fiscal period

Graduated rate estates

A graduated rate estate  (GRE) can have a non-calendar tax year (the period for which the accounts of the estate are made up for purposes of assessment). Additionally, a GRE will have a deemed tax year-end on the day on which the estate ceases to be a GRE, which will be no later than the day on which the 36-month period after the death of the individual ends.

Later tax year-ends will generally be on a calendar-year basis. For example, where an estate is created in June 2021, and is a GRE for 2021, 2022 and 2023, a deemed year-end will occur in June 2024 on the 3-year anniversary of the individual’s date of death. The testamentary trust will also have a tax year-end on December 31, 2024.

All other trusts

All other trusts are generally required to use a December 31 tax year-end. However, an exception is available for mutual fund trusts that elect to have a December 15 year-end . A mutual fund trust that previously elected to have a December 15 year-end can revoke the election. For more information, call 1-800-959-8281.

Deemed year-end rules for all trusts

There are other situations in which a trust would be subject to a deemed year-end that may affect its tax year-end. For example, if a trust ceased to be resident in Canada on June 14, 2023, a deemed year-end would be triggered and the trust would be considered to have a tax year from January 1 to June 14, 2023.

For certain testamentary  and inter vivos  trusts, a deemed tax year-end will occur upon the death of a particular beneficiary of the trust. For more information on the due date for filing the T3 return and payment of tax for the deemed tax year-end, see Form T1055 Summary of Deemed Dispositions – 2002 and later tax years.

For more information, call 1-800-959-8281.

T3 Slips, NR4 Slips and T3 and NR4 Summaries

In the same calendar year, you have to file the T3 return, the related T3 slips, NR4 slips, and T3 and NR4 Summaries no later than 90 days after the trust’s tax year-end. For more information see: T4013 T3 Trust Guide and Trust information returns – slips and summaries

Filing a final T3 return

If a graduated rate estate  ceases to exist, the tax year will end on the date of the final distribution of the assets. You have to file the final trust return and pay any balance owing no later than 90 days after this date.

If an inter vivos  trust or testamentary  trust (other than a graduated rate estate) ceases to exist, you have to file the final T3 return and pay any balance owing no later than 90 days after the trust’s tax year-end.

In either case, you should get a clearance certificate before you distribute the trust property.

Received dates by the CRA

If you mail a return first class, or if you use an equivalent delivery service, we consider the date of the postmark on the envelope to be the day you filed the return.

When the due date falls on a Saturday, Sunday, or public holiday recognized by the Canada Revenue Agency (CRA):

Penalties and interest

If you do not file an annual T3 return and you are required to, penalties could apply.

The failure to file a T3 return or to include specified information about reportable entities of the trust, as outlined on Schedule 15, may result in a late-filing penalty.

For information on penalties and interest on unpaid amounts, see, Penalties and interest in the T4013 T3 Trust Guide.

Graduated rate estate

A graduated rate estate (trust type 903), of an individual at any time, is the estate that arose on and as a consequence of the individual’s death, if all of the following conditions are met:

  • that time is no more than 36 months after the death of the individual
  • the estate is at that time a testamentary trust
  • the individual’s social insurance number is provided in the estate’s T3 return of income for the tax year that includes that time and for each of its earlier tax years that ended after 2015 (36 month period after the death of the individual)
  • the estate designates itself as the graduated rate estate of the individual in its T3 return of income
  • no other estate designates itself as the graduated rate estate of that individual in a T3 return of income for a tax year that ends after 2015

An estate can only be a "graduated rate estate" for up to 36 months following the death of an individual. The estate will cease to be a graduated rate estate if it is still in existence at the end of the 36 month period.

December 15 year-end for mutual fund trusts

For mutual fund trusts that filed an election to have a tax year-end of December 15, where the pre-loss restriction event year-end is after December 15 in that calendar year, the NR4 return must be filed within 90 days after the end of that December 15 tax year. In any other case, the NR4 return must be filed within 90 days after the end of the calendar year during which the pre-loss restriction event year-ends.

Inter vivos

An inter vivos trust is a trust that is not a testamentary trust.

Testamentary

A testamentary trust is a trust or estate that is generally created on and as result of the death of an individual, including a trust created under the terms of an individual’s will or by court order in relation to the deceased individual's estate under provincial or territorial law.

Generally, this type of trust does not include a trust created by a person other than a deceased individual, or a trust created after November 12, 1981, if any property was contributed to it other than by a deceased individual as a consequence of the individual's death. For rules about testamentary trusts created before November 13, 1981, call 1-800-959-8281.

If the assets are not distributed to the beneficiaries according to the terms of the will, the testamentary trust may become an inter-vivos trust.

For tax years ending after December 20, 2002, a testamentary trust may become an inter-vivos trust if the trust incurs a debt or other obligation to pay an amount to, or guaranteed by, a beneficiary or any other person or partnership (any or all referred to as specified party), with whom any beneficiary of the trust does not deal at arm's length.

This does not apply for certain debts or other obligations, including those:

  • incurred by the trust in satisfaction of a beneficiary’s right to enforce payment of an amount payable by the trust to the beneficiary or to receive any part of the trust’s capital
  • owed to the beneficiary as a result of services provided by the beneficiary for the trust
  • owed to the beneficiary as a result of a payment on behalf of the trust for which property was transferred to the specified party within 12 months of the payment and the beneficiary would have made the payment had they been dealing with the trust at arm’s length

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