Summary of "CRA’s 2026 Rule Punishes You for Helping Family"

Core concept

The Canada Revenue Agency (CRA) is enforcing reporting for “bare trusts.” A bare trust (per the CRA) is an arrangement where legal title is held in one person’s name while another is the beneficial owner (or vice‑versa). Common scenarios include joint bank accounts, property titled in someone else’s name, custodial investment accounts, and crypto/exchange accounts held in another person’s name.

CRA’s public position: whether an arrangement is a bare trust is “a question of fact and law.” The CRA will not provide legal advice on specific cases.

Assets and instruments affected

Examples mentioned in the video:

Bank accounts (joint accounts or accounts held for children)
Registered or registered‑type investment accounts (custodial accounts for minors)
Real estate — rental properties and principal residences
Crypto held on exchanges in another’s name
Business property held through separate companies
Trust filings (T3 trust tax return and Schedule 15 for information)

Required filing and methodology

The CRA requires an annual information filing for each bare trust arrangement. Key points:

File a full T3 trust return plus Schedule 15 for each bare trust arrangement annually.
Provide identifying information for everyone involved: name, address, date of birth, and tax identification number (SIN/ITN).
Track and report the value of the property in the trust each year (penalties are calculated as a percentage of that value).

Practical checklist (steps implied by the video):

Identify every asset or account where legal title and beneficial ownership differ.
Determine whether each arrangement meets the CRA’s bare trust test (CRA treats it as a fact‑and‑law determination).
Prepare and file a separate T3 trust return and Schedule 15 for each arrangement every year.
Track the fair value of each trust arrangement annually (for penalty calculations).
Monitor legislative developments and exemptions.

Key numbers, examples and penalties

Penalty for failure to file: up to 5% of the value of the property in the bare trust; it applies even if no tax is owing.
Examples:
- $200,000 in a trust → $10,000 penalty (5%)
- $500,000 → $25,000 penalty
- $1,000,000 → $50,000 penalty
Penalty applies per missed year; interest can also accumulate.
Comparison: a typical late personal tax filing penalty (where tax is owed) might be around $500 — illustrating how severe bare‑trust penalties can be.
Administrative scale: the video gave an example of a client with over 2,000 bare trust information filings.

Exemptions and thresholds

Exemptions mentioned in the video:

Parents on title for a principal residence to assist with a mortgage — exempt.
Joint bank accounts between spouses — exempt.
Arrangements with a value under $50,000 — generally exempt.

Note: These are the exemptions discussed in the video; taxpayers should confirm current rules and thresholds as legislation or interpretation may change.

Historical facts and legislative status

The rule was originally launched in 2023; initial rollout caused mass confusion and the CRA canceled deadlines after many had filed (about 44,000 filings).
The measure was delayed in 2024 and again in 2025 after pushback from CPA Canada, the Canadian Bar Association, and tax professionals.
Revised rules were included in a large budget bill (~600 pages). The bill passed the House of Commons on February 26, 2026. At the time of the video, the bill was in the Senate and not yet law.

Risks and practical impact

Significant compliance risk for ordinary family arrangements (e.g., parents saving for children, siblings on title to help finance a rental, holding crypto/custody for relatives).
Large potential monetary penalties even when no tax is owed.
High administrative burden if multiple assets or multiple beneficiaries are involved (many separate T3 + Schedule 15 filings).
Uncertainty for taxpayers because the CRA will not confirm whether a specific arrangement is a bare trust and will not provide legal advice.
The rules were criticized for aiming to prevent illicit activity but sweeping up common, legitimate family arrangements.

Recommendations and calls to action (from the video)

Immediate actions suggested:

Check whether your name appears on assets that are beneficially owned by someone else (children, parents, relatives, clients).
Prepare to file T3 trust returns and Schedule 15 for applicable arrangements if the law comes into force.
Share relevant information with affected family members or co‑owners.

Political/action items urged by the presenter:

Sign petitions (link referenced in the video description).
Use a provided letter template to contact your Member of Parliament or lobby the Senate before the bill becomes law.

Disclaimers, sources and authorities

Presenter identifies as a Canadian tax advisor with approximately 15 years’ experience.
CRA (Canada Revenue Agency) is the administering authority for these reporting rules.
CPA Canada and the Canadian Bar Association were active in pushing back on the measure.
The CRA’s stated approach: determination of a bare trust is fact‑ and law‑based; the CRA will not give legal advice on specific arrangements.
Legislative status noted: bill passed the House of Commons on Feb 26, 2026; pending in the Senate at the time of the video.