When to Request a Clearance Certificate After the Final Return in Canada

Filing the final return feels like the finish line, but for an executor it is usually only the middle of the process. Before you pay out the estate you generally need a clearance certificate, and CRA expects you to ask for it at a particular point.

This article explains when you can apply, what has to be settled first, what the request involves and how long it may take. Timelines are CRA targets and can change, so confirm current details before you rely on them.

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

What the certificate confirms, and why timing matters

A clearance certificate confirms that an estate, trust or corporation has paid all income tax, GST/HST, interest and penalties owed at the time it was issued, or that the Minister has accepted security for payment. A legal representative must obtain one before distributing property.

Timing matters because CRA will not issue it early. It does not issue the certificate for an estate unless the required returns are filed and assessed and all amounts are paid or secured. Sending the request in with the tax returns delays their assessment.

What must be settled before you apply

CRA says to apply only after all of the following are done:

• The required returns are filed and the notices of assessment are received.
• Any reassessments you requested have been received.
• All income taxes (including provincial or territorial taxes CRA administers), CPP contributions, EI premiums, interest and penalties are paid or secured.
• Legal documents proving your status as representative are ready to submit.

The required returns include the estate's T3 returns. A T3 return is due 90 days after the trust's tax year-end, or after the final distribution if the trust ceases to exist. A late T3 return may attract a separate penalty of $25 per day, minimum $100 and maximum $2,500, even with no balance owing.

CRA's circular says not to file Form TX19 until the notices of assessment are received, subject to exceptions listed in the circular. If you think an exception applies, confirm it with CRA or an adviser first.

Do not forget earlier years and the final return deadline

The legal representatives must file the final return for an individual who died by the later of the normal due date and six months after death. For a death from January 1 to October 31, the return is due and payment is owed by April 30 of the following year. For a death from November 1 to December 31, it is due six months after the date of death. If the deceased or the surviving spouse or common-law partner carried on a business, the filing date is June 15 of the following year for deaths January 1 to December 15, or six months after death for deaths December 16 to 31. The payment due date does not change, and this business rule does not apply to tax shelter investments.

Earlier years matter too. If the person died early in 2026, on or before the 2025 T1 due date, and had not filed the 2025 return, it is due six months after the date of death. Other previous-year returns keep their original due dates, so any earlier unfiled years are already late. A 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 a late-filing penalty was assessed on the deceased's return for any of the 3 previous years. Because the certificate depends on every required return being assessed, these gaps can hold things up.

Making the request

For estates, the request is made on Form TX19. Form GST352 is also needed if there is a GST/HST number. The estate package includes the signed will with any codicils and probate documents, proof of your status, a detailed asset list at the date of death, a statement of distribution to date and the proposed distribution of any holdback or residual, and details of beneficiaries of non-cash property.

You can submit online through Represent a Client or, as an executor, through your own My Account. Alternatively you can mail or fax the regional tax services office. If there are several representatives, offline access for additional representatives uses Form AUT-01, which for clearance certificates must be signed by all legal representatives. Online, you authorize representatives through Represent a Client or the representative authorization service.

Waiting, denials and what to do next

CRA acknowledges the request within 45 days, and assessment can take up to 120 days if all documents are provided. An audit may be needed first. If no certificate has arrived, it was denied, or no officer has contacted you within 120 days, you can phone CRA at 1-800-959-8281 for an individual T1 or trust T3 account. A denial states what is missing or what action is required, and you can reapply once the issues are resolved.

If the estate cannot cover all tax, interest and penalties owing, CRA generally does not issue the certificate. Tax not yet paid can sometimes be secured instead, but the form and amount of acceptable security should be confirmed with CRA first.

• List every return still to be filed and confirm each has a notice of assessment before applying.
• Pay or arrange security for all balances, interest and penalties.
• Assemble the will, appointment documents and asset list.
• Apply separately from the returns, not with them.
• Do not distribute while you wait, unless enough property remains to cover any liability.

Frequently asked questions