A clearance certificate is a certificate from the CRA that certifies any amounts owing to the CRA from the deceased have been paid, or security has been accepted for the payment. If there is a trust, a separate clearance certificate is required.
If no clearance certificate was obtained and property has been distributed, the executor can be held liable for all amounts that the deceased owes to the CRA.
Requirements to apply:
- You must be a legal representative of the estate
- The deceased tax returns have been filed and notice of assessments have been received
- All income taxes, CPP contributions, EI premiums, interest and penalties have been paid or received
- A complete copy of the Will
- All probate documents if applicable
- If no Will, a copy of the document appointing an administer (letters of Administration or letters of Verification issued through provincial court)
- Any other documents deemed necessary to prove you are the legal representative of the estate
- List of the assets owned by the deceased at date of death, at the adjusted cost base (ACB), including RRSPs and RRIFs
- Detailed statement of distributed assets of the estate
- A statement of proposed distribution holdbacks
- Names, social insurance numbers or account numbers, and addresses of any beneficiaries of property (excluding cash).
- A completed T1013 form, authorizing a legal representative, for example: accountant, lawyer, or notary, if the executor would like the CRA to communicate with them
For further information see IC82-6R12, Clearance Certificate on the CRA website
Once you have met all the requirements and obtained all the required documents you will complete a TX19 form and send it to your legal representative, or send it to your regional tax services office.
Contact us today and come in for a coffee to discuss your estate and what you need to do.