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FEATURE New reporting requirements for trusts could be tip of the iceberg Changes come as taxing authorities around the world move toward greater transparency AS NEW TRUST reporting and disclo- sure rules come into force for 2021, the New Year will see wills, trusts and estates lawyers grappling with how the changes impact their practice — and some lawyers predict this could be just the beginning. "We think this might open up more inqui- ries into what is going on behind the scenes with these trust funds," says Jordan Atin, counsel at Hull & Hull LLP. "It may well be just the thin edge of the wedge in terms of what they're going to do with this new reporting requirement." New income tax rules have been intro- duced that require trusts — with limited exceptions — to provide additional informa- tion, says Margaret O'Sullivan of O'Sullivan Estate Lawyers LLP. Certain trusts that may have had no reporting and disclosure obliga- tions previously because they had no income will now also be required to file a trust income tax and information return. "This is a very timely issue we are all think- ing about as 2020 rolls in. We only have one year to get this figured out," O'Sullivan says, noting that Canada is one small piece in a much bigger global puzzle, where tax- ing authorities around the world are moving toward more transparency, including with regards to trusts. Suzana Popovic-Montag, managing part- ner at Hull & Hull, says the changes are in line with Ontario's introduction a few years ago of new reporting obligations on the details of assets of estates to the finance min- ister through the introduction of the Estate Information Return. "There has been a historical lack of trans- parency in the administration of trusts and estates, and governments are now taking an interest in the use of these tools in the trans- fer of assets for taxation purposes," she says, adding that one can "expect concern sur- rounding privacy issues" any time there are FOCUS ON WILLS, TRUSTS & ESTATES 28 www.lawtimesnews.com