Quote:
Originally Posted by DoubleF
I believe a refund on filing doesn't come with interest. However, a withheld/delayed refund the CRA does give you some interest.
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.
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Well I'm going to push back on the deemed disposition rules a bit. It's certainly within the realm of the tax accountant to ask if the deceased held any investments and to explain the deemed disposition rules. That is fairly basic intake procedure and I am not a tax accountant by any stretch. That is probably the single biggest tax rule that affects returns for estates and your accountant should be highlighting that.
Also an examination of prior year returns should show dividend income.
But no disagreement on the bureaucracy and administrative headaches on dealing with CRA for an estate.
And you're right, they will pay you interest on a refund if there is a delay on their end. But not because you over-install or have too much withheld.