CRA T3 Filing update

Tax Topics
1

Just thought to pass this information on. It appeared in a email from CRA.

Reminder if you have a capital gain: You need to wait to file your T1 and T3 returns

The CRA is working diligently to update its systems to reflect the currently enacted capital gains inclusion rate of one-half. The CRA recommends that those impacted by this situation wait until the updates are completed in the coming weeks before filing their income tax and benefit return. The CRA will grant relief in respect of late-filing penalties and interest until June 2, 2025, for individual filers and until May 1, 2025, for Trust filers to provide additional time for taxpayers reporting capital gains to meet their tax filing obligations.

2

I’d like to know if they are going to charge the penalty/interest and then we have to seek relief or will it just be automatically flagged as exempt. I’ve mentioned to a few clients that we can’t file their returns until CRA gives the go-ahead. They all give me the fish-eye like I’m making this up. I’d really like to see them fix this.

3

I’m trying to wrap my head around this in order to gain some perspective on what is meant by the phrase

when the update to announce the administration change was published on January 31st…

https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/update-cra-administration-proposed-capital-gains-taxation-changes.html

So they are 40 days into diligently updating their systems to merely put things back to the way they were before they took it upon themselves to make changes that were never even passed into law. The collective brain and computing power must be in overdrive to complete this monumental task. :slightly_smiling_face:

In my little brain it seems like it shouldn’t take much more than changing a 0.67 back to a 0.5 or simply using the forms and programming that we have been using since the last change in 2001.

4 Likes
4

Yes, I totally agree as my little brain is thinking the same thing. So far my clients have been pretty good about it…fingers crossed CRA gets this solved soon.

5

Relief is granted for T3 returns and slips but what about for those taxpayers who don’t receive their T3 slips on time to file their T1? Or those taxpayers who don’t even realize there are missing T3 slips and file anyway?

I am hoping this relief extends automatically across the board to cover all situations but I have a feeling we’ll be writing a lot of letters come fall.