CRA finds that T3 reporting did not apply to a s. 94(3) trust with nominal assets

An individual resident in Canada settled a U.S.-resident trust with a $20 dollar bill (which was its only property) to be a beneficiary under the individual's will, so that the trust was deemed under s. 94(3) to be resident in Canada.

CRA confirmed that s. 150(1.1)(b) relieved such trust from a T3 filing obligation as it would have no tax payable, no taxable capital gains, and no disposition of taxable Canadian property. Furthermore, this result was not overridden by s. 150(1.2), given the exception in s. 150(1.2)(b) for a trust holding assets with a total fair market value not exceeding $50,000 throughout the year.

Accordingly, the trust would not be required to file a T3 return or Sched. 15 – and there also would be no required reporting under Reg. 204 because the trustee of the trust would not control or receive any income, gains, or profits.

Neal Armstrong. Summary of 2 June 2026 STEP Roundtable, Q.3 under s. 150(1.2)(b).