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Originally Posted by Strange Brew
Tax refunds don’t come with interest.
But if you under install and follow one of CRA’s allowable methods, you will not be charged interest or penalties.
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I believe a refund on filing doesn't come with interest. However, a withheld/delayed refund the CRA does give you some interest.
Quote:
Originally Posted by Strange Brew
Did you file the tax return in year of death on your own? There are some tricky things when there is no spouse involved but it is all doable. The clearance certificate process is also DIY. And in truth, you don’t technically need a clearance certificate. It covers the executor’s butt in case of back taxes and also forces you to account for their investments.
Any tax accountant worth their salt would have e required you to list the investments held by the deceased at date of death.Important thing is to amend that return quickly. It sounds like the estate has taxes owing, and best to get that taken care of ASAP.
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IMO, I do think that the CRA has made it unnecessarily difficult for executors and trustees to file Final/Estate tax returns for deceased. The authorization stuff that started this year is stupid and that's not including the slip calamity that happened this filing year. The amount of times I had clients saying the funeral home were helping with some stuff with CRA but had to re-send info 2-3+ times to get through was way too high (one said 5-6 times and that funeral home was livid the CRA was badly bungling something that had been done reasonably for years).
For many accountants, they ask what they normally do and if only a partial amount of info is received, there's only so much they can do. Especially since this year we couldn't look up slips to cross reference what is potentially out there. The biggest issue IMO is that many average taxpayers have no clue about the concept of a deemed disposition. Maybe in the future, there should be a system that you can link your SIN number to if you want and when you pass away, you should be able to have a trustee/executor send a death certificate to CRA to have institutions auto-register tax information on the MyCRA portal as at the date of death vs manually going through that process however many times. Eh... hopefully one day.