Who Is Personally Liable for Unpaid Estate Administration Tax in Ontario?

The tax itself is paid by the estate, not personally by the estate representative. Whether a trustee who has already distributed assets could be personally exposed if more tax turns out to be owing depends on the facts and the legislation, so it is worth confirming with a lawyer before you act.

Some exposure is clearly personal. An estate representative who fails to file the Estate Information Return, or who makes false or misleading statements, may be fined at least $1,000 and up to twice the tax payable, imprisoned for up to two years, or both. The return is due within 180 calendar days after the estate certificate is issued.

An estate representative must be able to back up asset values with supporting documents, must keep the records behind the return for four years, and must file an amended return within 60 days of becoming aware that information was incorrect or incomplete, a duty that applies within four years of the certificate being issued. The Ministry of Finance may reassess within four years after the tax was due, or at any time if a return was not filed on time or a misrepresentation was made.