Does an executor have to file the deceased's final tax return in Ontario?
Yes, in practice the executor, as legal representative, must make sure the deceased's tax returns are filed and any balance owing is paid before distributing the estate. The final (terminal) T1 return is due April 30 of the following year if death occurred between January 1 and October 31, and 6 months after the death if it occurred between November 1 and December 31.
If the deceased or their spouse or common-law partner carried on a business, the final return is due June 15 of the following year (death January 1 to December 15) or 6 months after death (December 16 to 31), though any balance owing is still due on the regular payment date. An estate's T3 return and any balance are due 90 days after the trust's tax year-end. A graduated rate estate can last up to 36 months after death, and if it winds up earlier its tax year ends on the date of final distribution.
Request a clearance certificate (Form TX19) only after the required returns are filed and assessed. Distributing without one makes the legal representative personally liable for unpaid tax, up to the value of the assets distributed. Confirm current T3 requirements with an accountant.
Key takeaways
- The legal representative must make sure the deceased's returns are filed and any balance owing is paid before distributing the estate.
- The final T1 is due April 30 of the following year for a death from January 1 to October 31, and 6 months after death for a death from November 1 to December 31.
- If the deceased or their spouse or common-law partner carried on a business, the final return is due June 15 of the following year for a death from January 1 to December 15, or 6 months after death for a death from December 16 to 31, and any balance owing is still due on the regular payment date.
- Distributing without a clearance certificate makes the legal representative personally liable for unpaid tax, up to the value of the assets distributed.