At the beginning of the new year, the Canada Revenue Agency (IRA) has also made a major change in filing a tax return for homeowners!
Accountants warn that the Canada Revenue Agency (CRA) has introduced new tax reporting obligations on trusts in the new year, which could result in paperwork and huge costs for many Canadians, some of whom may not even know they are part of the trust.
The new rules require trust companies (with a few exceptions) to file so-called T3 trust income tax and information returns annually and disclose information such as beneficiaries.
A trust is a legal relationship in which legal ownership is separated from beneficial interests.
A trust arises when the settlor who owns the property transfers the property to the trustee. The trustee has legal ownership of the property for the benefit of another person or persons, known as the beneficiary.
Whether a trust is subject to filing obligations depends on the circumstances. Trusts that hold assets worth up to $50,000 CAD per year are exempt from filing. But the exemption only applies to certain types of assets, including deposits, government debt, and listed securities.
People who own property at home should be especially careful.
Source: Taken by 51 reporters
The most worrying situation is when Canadian names are added to family members' home titles. This includes an elderly parent adding their child's name to the property title, and while having the child's name for the sole purpose may be seen as simplifying the eventual transfer of the property, such a setup may be considered a nominee trust, which will trigger the T3 filing requirement.
Another situation that is becoming more common in Canada is when parents sign up to help their children get a mortgage.
The same is true for parents who help their adult children co-sign a home mortgage. This is becoming more common in Canada as first-time homebuyers struggle to qualify for mortgages at high interest rates.
If the parents have no say in the property other than the child's instructions, then this may also be considered a nominee trust.
Ontario's six new laws and regulations went into effect on January 1
According to CTV: Several new legal and regulatory changes in Ontario will go into effect on New Year's Day, including daycare rules and penalties for improper access to patients' personal health information, among others.
1. Daycare safety mechanism
From January 1, 2024, Ontario will require all child care providers to develop a policy on what measures they will take to protect and monitor children if they do not arrive or are not picked up as expected.
These changes are made to prevent young children from being accidentally abandoned in hot cars, resulting in rare but horrific deaths.
The Safe Arrival system has long been implemented in schools, and children are only three or four years old when they start primary kindergarten. But not in childcare facilities, where children are smaller and more vulnerable.
图源：CTV News，下同
2. Ontario Privacy Protection
Other new regulations, which went into effect Monday, will allow the Ontario Information and Privacy Commissioner to impose fines on individuals or organizations that inappropriately access or share patients' personal health information.
3. Rectify the trailer industry
Some changes in the trailer industry will also come into effect, including new customer rights.
These rights include the right to consent to the towage, the right to the location of the trailer, the right to use the vehicle after the fact, and rights related to invoicing and payment.
Ontario will also take over the trailer licensing system from municipalities and will require all trailer operators and vehicle storage companies to be certified.
4. Updated list of invasive species
In the new year, Ontario has also added several creatures to the list of invasive species, including killer shrimp, most crayfish and some plants such as the Tree of Paradise.
Source: BlogTO, the same below
5. Updating the Occupational Health and Safety Act
Ontario is also updating the Occupational Health and Safety Act to improve the safety of crane operators at construction sites.
The two new regulations that will come into force soon will help ensure the correct installation and regular inspection and maintenance of the crane.
6. Liquor Purchase Regulations
Ontario is also expanding rules for the purchase of alcohol across provinces. Until January 1, 2026, consumers can purchase alcohol products directly from merchants in other provinces.
Do any of these policies affect you, and do you see any new changes in Canada, Ontario or Toronto in the new year?