CRA's Clearance Certificates for Estates - AG Tax LLP, FBAR – Report of Foreign Bank and Financial Accounts, What Aylett Grant Tax Needs to File your US Tax Returns, Canadian Tax Filing Requirements for Americans, Tax on Rental Income from Canadian Property, Sale of Canadian Properties for Americans, Filing Taxes in Year of Departure from Canada, Canadian Personal and Corporate tax returns, Cross Border Taxation and Business Planning, Disclosure of Foreign Assets and other information filings. How to create the employee clearance form? If you have any tax-related queries or need assistance with tax planning or filing please contact AG Tax. • Clearance Certificates are not automatically issued, you have to apply for it, • The Clearance certificate application is sent in once the final tax return notice of assessment has been received, • You can’t assume that your accountant will do this, you must specifically request that this be done, • Do not expect that the lawyer assisting with the estate will apply for the Clearance Certificate as this is and accounting function. It can take up to six months, after application, to receive the Clearance Certificate. Without a Tax Clearance Certificate, Canada Revenue Agency (CRA) can hold the Executor of an Estate personally liable for any unpaid tax debts up to the amount s/he distributes. Notify the CRA of the death (individual) 2. I considered answering the 5 W’s in the order we are used to saying them, but it is the “why” that is going to grab your attention. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. December 1, 2010. The final Tax Clearance Certificate covers the period up to the designated tax wind-up date (date of the final T3 Estate tax return). © AG Tax LLP | All Rights Reserved | Website by Aroma Web Design Vancouver, © AG Tax LLP | All Rights Reserved | Website by AromaWebDesign.com. However, there are ways to distribute major portions of the estate while waiting for the final Clearance Certificate. There is a lot of confusion even among accounting and legal professionals over which tax years a final Tax Clearance covers, but here is the real deal:   A final Tax Clearance Certificate covers both the deceased’s T1 tax returns and the Estate T3 tax returns. The names of outstanding items along with their value should be mentioned in the form… 300 - 505 Sixth Street, New Westminster, BC V3L 3B9 Determine whether a clearance certificate is needed. A Tax Clearance Certificate covers a period of time up to a specified date and includes the following tax debts: –          Income taxes of the deceased and/or the deceased’s Estate, –          Penalties and Interest payable by the deceased and/or the deceased’s Estate, –          CPP contributions and EI premiums. For enquiries, contact us. Our tax professionals are highly-experienced with US and Canadian tax laws and can provide you the right guidance to handle your tax situation. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. To request a Tax Clearance Certificate, complete Form TX19 – Asking for a Clearance Certificate and send it with the appropriate documentation (listed at the top of the form) to your local tax services office, Attention: Assistant Director, Audit. If T3 Estate tax returns were not required, then you can request and obtain a date of death Tax Clearance Certificate. 4. File the final tax return(s) 3. A Tax Clearance Certificate is not mandatory, but it is important to understand the risks of not obtaining one. Get the notice(s) of assessment and notice(s) of reassessment that apply AG Tax LLP Can Help. If he is using company laptop or any other asset, he is required to give it back … His money is being paid or is to be paid fully. So, I am going to start there. Pay or secure all amounts owing. Unless otherwise stated, the term Executor includes any words or phrases used to describe the legal representative of the Estate.