Who Files the Final Tax Return for a Deceased Person in BC?

If a family member has died, you may wonder whether you are legally responsible for their final tax return, and what authority you need before you can file it.

In general the duty falls on the deceased's legal representative. This article explains who that is, what they must do, and the main deadlines in British Columbia.

This article covers the law of British Columbia.

Who is the legal representative?

The legal representative of a deceased person is typically the executor named in the will. Being a relative does not by itself make you the legal representative.

If there is no will or executor, a person can be appointed through the courts. Alternatively, that person can ask to be registered with the CRA on Form RC552, Register as Representative for a Deceased Person, mailed to the deceased's tax centre. That approval covers CRA matters only, not other estate duties.

What the legal representative must do

• File the final return for the year of death.
• File any returns the deceased had not filed for earlier years.
• File T3 returns if required.
• Notify the CRA of the death and confirm all CRA balances are resolved.
• Cancel or transfer benefit payments such as the GST/HST credit, Canada Workers Benefit and Canada Child Benefit.

The final return reports all of the deceased's income from January 1 of the year of death up to the date of death.

When the final return is due

The business dates also apply where a spouse or common-law partner living with the deceased was carrying on a business. The later date is not available where the business's expenditures were mainly the cost or capital cost of tax shelter investments.

Even where the filing date is June 15, any balance owing is still due on the regular payment date, and interest accrues from the day after that date.

Late filing and penalties

The late-filing penalty on the final return is 5% of the balance owing plus 1% of the balance for each full month the return is late, to a maximum of 12 months. Compound daily interest applies to unpaid amounts and penalties from the day after the due date.

The penalty may be higher if a late-filing penalty was assessed on the deceased's return for any of the 3 previous tax years. The CRA may cancel penalties or interest where lateness was due to circumstances beyond the person's control.

What to do next

• Find out whether there is a will and who is named as executor.
• If there is no executor, get advice on court appointment or on registering with the CRA.
• Notify the CRA of the death as soon as possible.
• Gather the date of death, the SIN, full name, date of birth, address and a notice of assessment.
• Work out the due date that applies, and ask a lawyer or accountant if a business was involved.

Frequently asked questions