CRA’s bare trust filing change had costly consequences: ‘A lot of angry people’

WATCH - Abigail Bimman explains what a bare trust is, why the CRA made the last-minute change, the fury from accountants, and how it could affect your tax returns.Peter Corry from Alberta says he recently paid $700 for an accountant to file his bare trust tax returns, out of fear of a penalty for missing the April 2 deadline.

“The question is, is anyone from the CRA going to be held accountable for this? Because they should.” Brendan McCann, a partner of the Toronto-based accounting firm McCann & Associates LLP, says many clients took the penalty relief as an opportunity to work with their accountants to file their returns past the deadline, unrushed.

Canadians were billed for the returns that were filed, McCann says, but accountants who hadn’t filed before the CRA’s latest announcement likely won’t get paid for their time and labour.“We can’t go back and re-acquire that time that was spent, especially in March. We just have to move forward,” McCann said.He says he hopes Canada’s Department of Finance and the CRA give Canadians more notice next year before making changes to tax reporting rules.N.S. couple dies from strep A just hours apart.

The CRA said that after removing the gross negligence penalty this year, stakeholders “continued to express concerns with respect to those enhanced filing requirements.”

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