What are the T3 filing deadlines for mutual fund trusts following a qualifying exchange where there is a continuing trust and a trust that disappears?
CRA noted that the deemed year end arising under s. 132.2(1)(b) for both trusts accelerated the return filing deadline under Reg. 204(2), except that for the trust that disappeared, Reg. 205(2) required it to file a return within 30 days of the day of the discontinuance of its business or activity. However, CRA went on to indicate that application could be made for a return-filing extension, stating:
In order to obtain this extension, the trustee or “manager” of the entities involved must prepare the request by filing the following information:
- Reasons for the request for an extension of time to file.
- Names of the entities involved with their identification number, the date of the consolidation, and the date the CRA can expect to receive the returns.
- An Indication of whether the consolidation is a "qualifying exchange" as defined in subsection 132.2(2) and whether the election under paragraph (c) of that definition has been made.
In addition, the applicant must agree:
- for each of the mutual fund trusts that is part of the consolidation, to file the T3 returns, T3 summaries, etc., on or before the date indicated in the letter granting the extension, which cannot be later than the filing date that would have been requested in the absence of the consolidation.
- to identify each T3 return when it is filed as either the transferor trust's or the transferee trust's return.
- to indicate whether, as a result of the consolidation, a new transferee trust has been created instead of a continuation of an existing trust.
- to attach a copy of the letter approving the application to each of the relevant statements.
- to provide the CRA with details of the “categories” of income and capital gains of the various underlying funds; and
- that the granting of the extension does not, under any circumstances, create a year-end for an entity.