Easy Ways to Obtain Tax Clearance Certificate in Canada 2023
Tax Clearance Certificate
When a person passes away, he or she may leave behind unpaid tax debts. A tax clearance certificate states that the deceased person or corporation has satisfied all tax liabilities. The certificate confirms that these entities have paid federal and provincial taxes, interests and penalties it reasonably owed at the time the certificate was issued. In Canada, the Canada Revenue Agency (CRA) would issue the tax clearance certificate. For detailed information, you may contact the Canadian tax consulting service.
How to Obtain Tax Clearance Certificate
After the legal representative has provided the required documentation and settled the tax affair, as per the corporate tax consultants in Toronto, he or she can ask for the clearance certificate from the Canada Revenue Agency. For that he or she needs to fill up the “Asking for Clearance Certificate (TX19, GST352)” form. There, the legal representative needs to provide the following information.
- A complete “TX19, Asking for a Clearance Certificate” form;
- A complete “AUT-01, Authorize a Representative for Access by Phone and Mail” form;
- A detailed list of the assets that the deceased owned on the date of his or her death;
- A copy of one of the following documents: (1) the deceased person’s Will; (2) where the deceased has died intestate – that is, without a Will – a copy of the documents appointing the legal representative as an administrator of the estate; and (3) a copy of a trust agreement or document, in context of a living trust;
- Any of the following information and documents, where applicable:
- Documents confirming the legal representative of the estate or trust;
- Schedule 3, showing the capital gains or losses from the final income tax returns of the deceased person;
- A complete list of all the assets transferred to the trust including, the adjusted cost base and the fair market value of those assets;
- A statement of how the legal representative intends to distribute any residual amounts or property; and
- The names, addresses, social insurance numbers or account numbers of any beneficiaries of property other than cash.
Ways to obtain Tax Clearance Certificate
- Online: You can easily get the tax clearance certificate online from the official website of the Canada Revenue Agency, www.canada.ca. You need to fill up and send the “Asking for Clearance Certificate (TX19, GST352)” form and it will be available there.
- Mail: After you have submitted the “Asking for Clearance Certificate (TX19, GST352)” form you can ask them to provide your certificate via mail. Along with the other information you need to provide them with your email address.
- Fax: If you prefer to get a hard copy of your certificate, you can provide CRA with your fax number and they will fax your document.
Some of the questions you might have:
What is a Tax Clearance Certificate?
A tax clearance certificate is an official document issued by the CRA that verifies an individual or business entity’s compliance with Canadian tax laws. It indicates that all outstanding tax liabilities have been settled.
Who Needs a TCC?
Individuals or businesses may require a tax clearance certificate for various reasons, such as selling a business, transferring assets, or participating in certain government contracts.
How Do I Apply for a TCC?
Contact the CRA or visit their website to obtain the necessary forms and instructions. Typically, you’ll need to provide information about your tax obligations, outstanding balances, and reasons for requesting the certificate.
What Information is Required for the Application?
You will likely need to provide details about your income, assets, and liabilities. This may include tax returns, financial statements, and information about any outstanding tax debts.
Is There a Fee for Obtaining a TCC?
As of my last update, there was no specific fee for obtaining a tax clearance certificate. However, it’s important to check the most recent information, as policies may change.
How Long Does it Take to Get a TCC?
The processing time can vary. It’s advisable to apply well in advance of any deadlines to ensure you receive the certificate when needed. The processing time may also depend on the complexity of your financial situation.
If you want to learn more about accounting and taxes, check the Accounting and Tax company. Pursuant to the Canada Revenue Agency’s Information Circular IC82-6R11, a tax clearance certificate will be issued on “Form TX21, Clearance Certificate” where (a) the applicable income tax returns have been filed and assessed, and (b) amounts for which the taxpayer is liable for have been received or secured.
