Is an Executor Personally Liable for the Deceased's Unfiled Tax Returns From Earlier Years in Canada?

This answer covers Canadian federal tax law, which applies in every province.

Possibly, to the extent of the property you control. A legal representative is jointly and severally liable with the deceased for the deceased's unpaid amounts under the Income Tax Act, to the extent of the representative's control of the deceased's property.

Anyone who administers or otherwise deals with the estate of a person who did not file a required return must file that return. Earlier unfiled years are generally already late, but a 2025 return is due six months after death if the person died early in 2026 on or before its due date. The late-filing penalty with a balance owing is 5% of the balance plus 1% for each full month late, up to 12 months, and interest compounds daily. The penalty may be higher if one was assessed on the deceased's return in the 3 previous years.

A legal representative generally needs a clearance certificate before distributing property, though not before each distribution if enough property remains to cover any liability. CRA issues one only once returns are filed and assessed and amounts are paid or secured. Distributing without it makes the representative personally liable up to the value distributed. Confirm the details with a lawyer or accountant.