Trust Filings: Dining, Recreation or Sporting Facilities
When a NPO provides dining, recreational or sporting facilities to their members, a trust is deemed to exist and is subject to tax on property income and certain capital gains (Subsection 149(5)). Such trusts are referred to below as 149(5) trusts.
An August 27, 2025 Technical Interpretation (2025-105746, D. Dannehl) considered whether Schedule 15, Beneficial Ownership Information of a Trust, must be filed in respect of these 149(5) trusts.
CRA stated that a 149(5) trust would be a trust created without express intent. A trust created without express intent is only required to file a T3 return for December 31, 2023 and later taxation years if one of the historical requirements is met, such as disposing of capital property or having tax payable (Subsection 150(1.1)).
If a T3 return is required, Schedule 15 must also be filed unless the non-express trust is a listed trust (Paragraphs 150(1.2)(e)). CRA opined that 149(5) trusts are not themselves NPO’s, therefore this exception is not applicable.
In respect of settlors and beneficiaries, CRA confirmed that the rule that deem there to be a trust (Subsection 149(5)) also deem certain parties to be trustees, but do not deem parties to be settlors or beneficiaries. Thus, for reporting purposes, Schedule 15 would include information solely in respect of the deemed trustees. CRA did not comment on whether information on persons that have the ability (through the terms of the trust or a related agreement) to exert influence over trustee decisions regarding the appointment of income or capital of the trust would be required.
